Bitcoin Price Stays Steady at $41,000 While Traders Await Federal Reserve’s Decision

12:29 am
December 14, 2023
Featured image for “Bitcoin Price Stays Steady at $41,000 While Traders Await Federal Reserve’s Decision”

The cryptocurrency market is currently in suspense as traders await the Federal Reserve’s decision, leading to a 40% decrease in trading volume within the last 24 hours.

Bitcoin (BTC), the flagship cryptocurrency, is currently consolidating around the $41,000 price level, with traders keenly anticipating the Federal Reserve’s interest rate decision, scheduled for today.

Bitcoin’s Price Trend

Bitcoin has experienced significant volatility in the market, bouncing back from a low of $40,200 to $42,000 before stabilizing around $41,300. Despite the apparent stability, the crypto market is still on edge, with traders closely analyzing key metrics to gauge the sentiments of major players in the space.

While some attribute the recent negative price movement to derivatives markets, a closer examination reveals a more complex picture. The impact of forceful liquidation orders, often associated with futures markets, faded quickly after Bitcoin’s price hit $40,200 on Monday, challenging the notion of a crash solely caused by derivatives.

To gauge whether influential market participants such as Bitcoin whales and market makers remain bullish, traders are closely monitoring the Bitcoin futures premium, also known as the basis rate. Despite Monday’s 9% intraday price drop, the BTC futures premium stayed above the 10% neutral-to-bullish threshold, indicating resilience and potentially continued optimism among major players.

Further insights into investor sentiment can be gleaned from examining the options markets. The 25% delta skew, which measures the cost of upside or downside protection, has remained neutral since December 5, suggesting a balanced cost for both call (buy) and put (sell) options, indicating resilience after the 6.1% correction since December 10.

Federal Reserve’s Impact on Bitcoin Price

The crypto market is treading cautiously as it awaits the Federal Reserve’s decision, with a 40% drop in trading volume observed over the last 24 hours. Federal Reserve Chair Jerome Powell is anticipated to provide a summary of economic projections following the release of the Consumer Price Index (CPI) data, which revealed a decline in US inflation to 3.1%, aligning with market expectations.

Investors are wary of potential rate adjustments, with the consensus leaning towards the Fed maintaining rates within the 5.25% to 5.50% range. The uncertainty surrounding the potential for future rate hikes has contributed to the instability witnessed in the Bitcoin price.

In traditional financial markets, the Dow Jones Industrial Average futures rose by 0.11%, and S&P 500 and Nasdaq 100 futures climbed 0.11% and 0.18% respectively, indicating positive sessions for major averages with intraday levels reaching new highs.

Traders will closely monitor Jerome Powell’s statements for clues on the timing of possible rate cuts. The CME FedWatch Tool suggests market expectations of rate cuts beginning next spring, but Powell may have a different perspective. Treasury yields have also retraced, with the 10-year Treasury yield dropping to 4.2% after peaking at 5% in October.

Sources: Coindesk, Cointelegraph

Summary

The Bitcoin price has reached a point of consolidation around $41,000 as traders await the Federal Reserve’s decision. The market is characterized by caution with a 40% decrease in trading volume. Bitcoin has experienced volatile movements, with traders closely monitoring key metrics to gauge market sentiment. The Federal Reserve’s upcoming interest rate decision is anticipated to impact Bitcoin’s price trend, with traders closely watching for potential rate adjustments and assessing statements from Federal Reserve Chair Jerome Powell.

Frequently Asked Questions

What is the current price of Bitcoin?

Bitcoin is currently consolidating around the $41,000 price mark.

What is the significance of the Federal Reserve’s decision on Bitcoin’s price?

The Federal Reserve’s interest rate decision is closely watched by traders as it can impact market sentiment and contribute to price volatility in the cryptocurrency space.

How are traders monitoring Bitcoin’s price movements?

Traders are closely analyzing key metrics such as the Bitcoin futures premium and options markets to gauge the sentiments of major players in the crypto market.


Share:

More in this category ...

11:58 am February 23, 2024

730K Investors Exit Despite Record $7B Inflows

Featured image for “730K Investors Exit Despite Record $7B Inflows”
10:49 am February 23, 2024

Tokenized Securities: Understanding the Impact on Traditional Financial Markets

7:08 am February 23, 2024

Enhance Your Technical Team’s Skills with Practical Technology Training

3:19 am February 23, 2024

Blockchain 101: An Essential Guide for Artists and Creators on Copyright Protection

3:05 am February 23, 2024

Binance Labs invests in EigenLayer restaking protocol Renzo

12:01 am February 23, 2024

Is Bitcoin’s Bullish Streak Sustainable?

Featured image for “Is Bitcoin’s Bullish Streak Sustainable?”
7:53 pm February 22, 2024

Paris Saint-Germain (PSG) Becomes First Football Club to Officially Validate a Blockchain

7:46 pm February 22, 2024

Innovations in Music Distribution: Understanding Decentralized Streaming Protocols

7:28 pm February 22, 2024

Operationalizing Ethical AI in Defense: A Holistic Approach

12:41 pm February 22, 2024

JasmyCoin rallies 295% as Bitcoin Dogs take the crypto stage by storm

12:14 pm February 22, 2024

The Future of Diamond Trading: Disrupting Traditional Channels with Blockchain

12:03 pm February 22, 2024

Apecoin Climbs To 6-Month High Amidst Whales’ Strategic Moves

Featured image for “Apecoin Climbs To 6-Month High Amidst Whales’ Strategic Moves”
7:50 am February 22, 2024

Polygon and StarkWare unveil Circle STARKs to streamline Zk Proofs

5:29 am February 22, 2024

Lido adds support for 1inch as withdrawal aggregator

4:44 am February 22, 2024

Unlocking the Value of Tokenized Data in Health Research and Analytics

12:05 am February 22, 2024

Is Ethereum Overvalued, Similar ‘To Meme Coins Like Shiba Inu’?

Featured image for “Is Ethereum Overvalued, Similar ‘To Meme Coins Like Shiba Inu’?”
10:17 pm February 21, 2024

Binance Introduces Portal (PORTAL) to Launchpool for Crypto Gaming

9:15 pm February 21, 2024

Smart Contracts and Blockchain: Transforming Sustainable Supply Chains

3:03 pm February 21, 2024

Brad Garlinghouse Optimistic about Ripple’s Future, Says Ripple Will Welcome XRP ETF

1:44 pm February 21, 2024

From Trust to Security: The Case for Decentralized Identity Management Systems

12:08 pm February 21, 2024

Render Token Surges 60% In a Month, Gains Traction with Investors

Featured image for “Render Token Surges 60% In a Month, Gains Traction with Investors”
8:29 am February 21, 2024

Climate change predictions: Anticipating and adapting to a warming world

7:51 am February 21, 2024

Starknet’s STRK sees volatile market debut following airdrop

6:14 am February 21, 2024

Securing the Food Supply: How Blockchain is Combating Counterfeit Products

12:39 am February 21, 2024

Analysts say $3k “a relatively small obstacle”

12:11 am February 21, 2024

Bitcoin Whales Steer Clear Of Significant Short Positions, Show Confidence In Price Surge

Featured image for “Bitcoin Whales Steer Clear Of Significant Short Positions, Show Confidence In Price Surge”
10:44 pm February 20, 2024

The Potential of Tokenized Derivatives: Unlocking New Opportunities for Investors

8:40 pm February 20, 2024

How IBM is using Real User Monitoring and DNS to deliver premium Global Server Load Balancing for business-critical applications 

5:27 pm February 20, 2024

Human Institute Teams Up with Polygon Labs and Animoca Brands to Introduce ZKP-Powered Palm Recognition Technology

3:16 pm February 20, 2024

The Future of E-Commerce: Unleashing the Potential of Blockchain Technology