Bitcoin and Ethereum prices recorded modest gains on Wednesday ahead of the Federal Reserve’s decision to raise rates. The price of Bitcoin (BTC) rose more than 5% on Tuesday as CPI inflation stands at 7.1%, against the expected 7.3%. Over the past few hours, Bitcoin’s price surged nearly 1% higher to test the $18,000 resistance level.
Bitcoin is currently trading above USD 17,900, up nearly 4% in the past 24 hours. Trading volume has also jumped higher and the 24-hour low and high are at $17,312 and $17,930 respectively. In addition, the Bitcoin Fear and Greed Index is rising to the pre-FTX crisis level of 30.
The price of Ethereum (ETH) is trading at $1,331, up more than 3% in the past 24 hours. Similar to Bitcoin, ETH price rose nearly 1% in recent hours. The 24-hour low and high are at $1,289 and $1,341 respectively. The ETH price moves strongly compared to BTC. However, a resulting rally will help altcoins soar higher.
Wall Street Expectations on Fed Rate Hike and Bitcoin Price
The Federal Reserve is expected to raise Fed Funds rates by 50 basis points to 4.25%-4.5% at its latest monetary policy meeting, following four consecutive 75 basis point rate hikes. Investors will also keep a close eye on projections for growth and inflation as the US CPI continues to fall.
Wall Street expects a slowdown in rate hikes from December, as suggested by Fed Chairman Jerome Powell following a 75 basis point rate hike in November. JPMorgan, Goldman Sachs, Citi, Nomura, Barclays and Bloomberg expect interest rates to rise by 50 basis points in December.
The UK announced today that annual inflation fell to 10.7% in November, from a 41-year high of 11.1% in October, beating forecasts of 10.9%. For example, Bitcoin and Ethereum prices continued to rise.
Futures linked to the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 will remain flat Wednesday as investors are unsure about the Fed’s aggressive or accommodative stance. Investors expect a smaller rate hike from the Federal Reserve after softer inflation data.
According to the CME FedWatch Tool, the probability of a rate hike of 50 basis points is 80%. The value increased from 73.5% after the release of the CPI data. In addition, the US Dollar Index (DXY) has fallen below 104. The exchanges have already reacted to it, but crypto investors are waiting for the Fed’s decision to raise rates to confirm the market bottom.
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Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for quite some time and is currently covering all the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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