Claim $500Bitcoin Bullish Fundamentals Wanes Ahead Of FOMC; Wall Street Estimates
Bitcoin price holds above $28,000 as traders speculate whether more upside momentum still exists. Investors are awaiting the crucial rate hike decision by the U.S. Federal Reserve after the FOMC meeting on Wednesday amid the banking crisis in the U.S.
The CME FedWatch Tool indicates there’s an 18.1% probability of no rate hike by the Fed and an 81.9% probability for a 25 bps rate hike. Moreover, the Crypto Fear & Greed Index has hit a 16-month high of 68, with the market sentiment currently in the ‘Greed‘ zone.
Bitcoin Fundamentals Shifting Ahead of FOMC
Massive Bitcoin rally in the last two weeks pushed BTC price to hit over $28,000 after 9 months. However, the fundamentals are changing ahead of the FOMC rate hike decision.
Bitcoin futures perpetual funding rate just turned negative for the first time in a week as traders speculate whether a correction is coming next. Bearish sentiment ahead of the crucial FOMC rate hike will likely cause Bitcoin price to fall below $27,000 again.
Meanwhile, the dump on BTC dominance is creating a spike in altcoins, with Ethereum and XRP jumping 3% and 5% in just an hour, respectively. Moreover, miner reserves dropped by 668 BTC in the last 48 hours, which suggests that miners have sold around $18,370,000 worth of BTC.
Wall Street Estimates On Fed Rate Hike
Tesla CEO Elon Musk, economist Peter Schiff, and billionaire Bill Ackman have warned the U.S. Fed and FDIC of worsening banking crisis and market conditions if the central bank decides to continue rate hikes. Bill Ackman believes the Fed should pause, while Elon Musk replied “Fed needs to drop the rate by at least 50bps on Wednesday.”
For the first time in many years, Wall Street giants have given mixed estimates on the Fed rate hike. Barclays, Credit Suisse, and Goldman Sachs no longer expect the Fed to hike rates in March. Meanwhile, Bloomberg, JP Morgan, Morgan Stanley, BMO, and Citi estimate a 25 bps rate hike.
Also Read: LUNC News: Developer Edward Kim Hints At Terra Luna Classic Becoming AI Chain
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.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Trump Calls for Rate Cuts as Fed Chair Favorite Hassett Says U.S. Lags on Lowering Rates
- Aave Labs vs DAO: What Investors Should Know About the AAVE Token Alignment Proposal
- January Fed Rate Cut Odds Fall to New Lows After Strong U.S. Q3 GDP Report
- Breaking: U.S. GDP Rises To 4.3% In Q3, BTC Price Climbs
- Breaking: Bank of Russia Proposes Allowing Investors to Buy Bitcoin and Crypto in Major Regulatory Shift
- XRP Price Prediction: Will 4 Billion Transactions Spark Next Rally?
- Solana Price Outlook: Will SOL Recover With Strong Institutional Buying?
- Ethereum Price Risks Crash to $2,500 Amid Sustained Wintermute Dumping
- Is It Time to Sell Bitcoin for Gold- Analyst Spots 2023 Pattern That Triggered BTC’s Last Major Rally
- Bitcoin Price Prediction and Analysis: Will BTC Hit $100k Before Year-End?
- Bitcoin Price Prediction As Michael Saylor Pauses BTC Purchase- Is A Fall to $74k Imminent?
