This year’s first US FOMC meeting is scheduled to wrap up today and most analysts expect the Federal Reserve to raise interest rates by another 25 basis points. While the Bitcoin price and most of the crypto market remain stable so far, it is likely to see a lot of volatility later in the day. This is because the chairman of the Federal Reserve will announce tonight what the central bank of America will do with interest rates.
Calm before the storm?
On Sunday night, Bitcoin rose to its five-month high, just inches away from $24,000. However, before it had a chance to return to this level, the price fell again by more than $1,500 to a multi-day low of $22,400.
A day later, BTC managed to recover somewhat, so that the largest cryptocurrency in the world is now trading relatively stable at around $23,000. But that stability could soon come to an end.
All eyes are on the outcome of the first FOMC meeting of the year today. Tonight, Federal Reserve Chairman Jerome Powell will announce the latest rate hike. Most analysts expect this to be a 25 basis point increase.
Given the historical relationship between these events and BTC, it is quite likely that there will be more volatility during the day.