Bitcoin Holds At Crucial Support of 50-Month Average, All Eyes on The Fed

Bhushan Akolkar
September 21, 2022
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Ahead of the FOMC meeting on Wednesday, September 21, Bitcoin has come under severe selling pressure. As of press time, Bitcoin is trading 1.56% down at a price of $19,000 levels. Along with Bitcoin, other altcoins have also come under selling pressure.

Just to note that the $19,000 is a 50-month average for Bitcoin and its crucial support levels. As per data from Bloomberg, Bitcoin has been defending these levels since 2015. Thus, if Bitcoin fails to defend the support this time, it could mean further pain and price correction for BTC investors.

Courtesy: Bloomberg

The Fed Meeting

The U.S. Federal Reserve will announce an interest rate hike on Wednesday owing to soaring inflation in the U.S. The Fed policy decision will be key to deciding the further price movement for Bitcoin.

The market could take a breather if the Fed announces a 75 basis points rate hike which will be on the expected lines. However, a 100 basis points rate hike could put severe selling pressure due to imperiling liquidity. Speaking to Bloomberg, John Toro, head of trading at digital-asset exchange Independent Reserve said:

“If the FOMC delivers less than a 100 basis points hike, it would make sense to see a small relief rally — this could be quite large if the FOMC were to deliver less than a 75 basis points increase, although this seems highly unlikely”.

The MVIS CryptoCompare Digital Assets 100 Index is down once again this week. The index is down 60% year-to-date against the 21% drop in U.S. equities.

MicroStrategy Buys More Bitcoins

On Tuesday, September 20, MicroStrategy announced their new purchase of 301 additional Bitcoins. Company CEO Michael Saylor noted:

MicroStrategy has purchased an additional 301 bitcoins for ~$6.0 million at an average price of ~$19,851 per #bitcoin. As of 9/19/22 @MicroStrategy holds ~130,000 bitcoins acquired for ~$3.98 billion at an average price of ~$30,639 per bitcoin.

MicroStrategy (NASDAQ: MSTR) is also considering a $500 million worth of stock sale to buy additional Bitcoins in its reserves.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.