Cryptocurrencies like Bitcoin, Ethereum, and Dogecoin went down on Wednesday after the release of minutes from the September Federal Open Market Committee meeting. These minutes revealed that most committee members think it’s necessary to raise interest rates at least one more time during this cycle.
The reason behind this decision is to keep interest rates high until there’s clear evidence that inflation is getting back to the targeted 2% per year.
Some members disagreed, but the summary of the September 19-20 meeting stated that a majority believed one more rate increase was likely, while others thought there might be no need for further increases.
People are eagerly waiting for the Bureau of Labor Statistics to release inflation data for September, which will happen on Friday.
In the cryptocurrency market, some coins like Chainlink, Maker, and Woo saw gains in the past 24 hours. The overall crypto market cap is at $1.06 trillion, which is down by 1.39% in the last 24 hours.
In the stock market, things were more positive as investors watched economic data and how key indices performed. The S&P 500 went up by 0.43%, the Nasdaq Composite increased by 0.71%, and the markets had a generally good day.
#Bitcoin into that area of potential longs. I'm starting to buy some here, let's see where we're heading with CPI tomorrow.
— Michaël van de Poppe (@CryptoMichNL) October 11, 2023
Crypto analyst Michael Van de Poppe thinks that Bitcoin is in a place where it might be a good idea to buy and hold for a while. He’s making this move while keeping an eye on the Consumer Price Index (CPI) report that’s due tomorrow. He also noticed that the U.S. Dollar and bond yields are going down, while the Nasdaq stock index and the price of Gold are going up. However, he points out that Bitcoin isn’t rising as quickly as these other assets.
$BTC: I think we're still in a period of heavy chop with no true breakout yet. Reminds me a lot of 2019, where price traded up and down, above and below the 200d EMA with weird spikes everywhere
— Altcoin Sherpa (@AltcoinSherpa) October 11, 2023
A crypto analyst using the name Altcoin Sherpa sees Bitcoin as being in a phase of uncertain and unstable price movement, similar to how it was in 2019. Back then, the price kept going up and down, crossing a particular moving average, and having unexpected jumps. They believe that the exciting times for Bitcoin will likely come in 2024-2025 and suggest staying patient and resilient until then.
🤑 The growing amount of outstanding futures & options toward #Bitcoin may be lending to #crypto's failure to launch here in October. Rising open interest, particularly when $BTC starts seeing $7B or more, often signals greed. For now, it sits at $6.19B. https://t.co/DHSaJGvQtI pic.twitter.com/zkE6qbDjN9
— Santiment (@santimentfeed) October 11, 2023
Santiment, a platform that studies on-chain data, suggests that the growing number of Bitcoin futures and options contracts might be one reason for the less exciting performance of the cryptocurrency market in October. When there’s a lot of open interest in Bitcoin, like $7 billion or more, it often signals that investors are feeling greedy. Right now, the open interest is at $6.19 billion.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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