December 2, 2023

Brighton Journal

Complete News World

Bitcoin price rises ahead of Fed interest rate decision. Brace for volatility.

Bitcoin price rises ahead of Fed interest rate decision.  Brace for volatility.


Other cryptocurrencies rose on Wednesday ahead of the Federal Reserve’s latest move on monetary policy. As traders pile in bullish bets ahead of the central bank’s interest rate decision, cryptocurrency markets could be ripe for volatility.

Bitcoin’s price has risen less than 1% in the past 24 hours to exceed $27,150, and is trading near its highest point so far in September. The largest digital assets moved comfortably outside the $26,000 area that dominated trading over the past month amid historically low levels of volatility and volume.

Analyst Wael Hammad from brokerage firm said: “Some relative stability in the cryptocurrency market, led by Bitcoin, which settled near the $27,000 level.” “All market sectors are looking forward to the upcoming decision of the Federal Open Market Committee.”

Cryptocurrencies – e.g

Dow Jones Industrial Average


Standard & Poor’s 500

– They are preparing to move against the backdrop of the Federal Reserve’s next interest rate decision, scheduled for 2 p.m. ET.

The central bank is expected to keep borrowing costs steady, with focus on its next move in November, as expectations remain in flux over whether there will be another rate hike or whether financial conditions are now tight enough to rein in inflation. The price environment remains key for Bitcoin, which has been under intense pressure since the Federal Reserve began its tightening cycle last year. Higher returns on risk-free cash tend to reduce demand for riskier bets like cryptocurrencies.

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There is potential for a spike in volatility around the Fed’s decision, with traders stacking bullish bets on Bitcoin in the perpetual futures market, the most liquid market in all cryptocurrencies, and full of leverage, or borrowed money.

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Bitcoin open interest — the amount of capital locked into active futures contracts — on Binance, the world’s largest cryptocurrency futures marketplace, rose for the third day in a row to $3.3 billion, according to data from Coinglass, with bets trending strongly upward. With so much leverage in bets that prices will rise, a hawkish move from the Fed could spook traders and trigger a cascade of selling, sending Bitcoin prices violently lower as leveraged traders’ positions are wiped out.

Beyond Bitcoin,


The second-largest cryptocurrency was trading less than 1% in the red at $1,640. Micro tokens, or altcoins, have been mixed in with


Down less than 1% and


Up 1% Memecoins muted, with


Slightly less than flat however

Shiba Inu

An increase of less than 1%.

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Write to Jack Denton at [email protected]