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Bitcoin and Ethereum prices record modest gains on Wednesday ahead of the Federal Reserve rate hike decision. Bitcoin (BTC) price rallied over 5% on Tuesday as the CPI inflation comes in at 7.1% against the expected 7.3%. In the last few hours, Bitcoin price soared nearly 1% higher to test the $18k resistance level.
Bitcoin currently trades above $18,200, nearly 3% up in the last 24 hours. The trading volume has also jumped higher and the 24-hour low and high are $18,312 and $17,930, respectively. Moreover, the Bitcoin Fear and Greed Index rises to the pre-FTX crisis level of 30.
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Ethereum (ETH) price is trading at $1,341, up over 2% in the last 24 hours. Similar to Bitcoin, ETH price soared nearly 1% in the last few hours. The 24-hour low and high are $1,289 and $1,341, respectively. The ETH price is moving strongly as compared to BTC. However, a resultant rally will help drive altcoins to move higher.
Wall Street Expectations On Fed Rate Hike and Bitcoin Price
The Federal Reserve is expected to raise the fed funds rate by 50 bps to 4.25%-4.5% during its last monetary policy meeting, following four consecutive 75 bps rate hikes. Investors will also keep a close eye on projections for growth and inflation as the U.S. CPI continues to fall.
Wall Street expects a slowdown in rate hikes from December as hinted by Fed Chair Jerome Powell after a 75 bps rate hike in November. JPMorgan, Goldman Sachs, Citi, Nomura, Barclays, and Bloomberg expect a 50 bps rate hike in December.
Today, the UK announced that the annual inflation has eased to 10.7% in November from a 41-year high of 11.1% in October, beating forecasts of 10.9%. Thus, Bitcoin and Ethereum prices remained higher.
Futures tied to Dow Jones Industrial Average, S&P 500, and Nasdaq 100 remain flat on Wednesday as investors are uncertain over the Fed’s hawkish or dovish stance. Investors anticipate a smaller interest-rate increase from the Federal Reserve after softer inflation data.
As per the CME FedWatch Tool, the probability of a 50 bps rate hike is 80%. The value increased from 73.5% after the CPI data release. Moreover, the U.S. Dollar Index (DXY) has dropped below 104. The stock markets have already reacted to it, but crypto investors are awaiting the Fed rate hike decision to confirm the market bottom.
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