All Eyes on Fed Reserve Rate Announcement as Bitcoin Fights for $11K
Bitcoin is two dollars away from $11K as I type
All Eyes on Fed Reserve Rate Announcement, as Bitcoin Fights for $11
“Price volatility may pick up following the Federal Reserve’s rate decision, due at 18:00 UTC.
The Fed is expected to keep interest rates unchanged and reiterate its willingness to tolerate high inflation.
In other words, interest rates are likely to remain low for a prolonged period – a bullish development for scarce assets like bitcoin and gold.
Markets, however, have already factored in this likelihood, according to Reuters.
The focus, therefore, will be on the Fed’s growth and inflation forecasts.
According to BK Asset Management’s Kathy Lien, the U.S. dollar may find buyers if the Fed is more positive on economic growth. In that case, bitcoin will likely face selling pressure.
Investment banking giant Goldman Sachs has already upgraded the U.S. third quarter gross domestic product forecast to 35% from 30%.
If the Fed announces more stimulus measures, the dollar would likely drop, potentially powering stronger gains in bitcoin.
Bitcoin has become more sensitive to action in the U.S. dollar over the past 2.5 months.”