Federal Reserve Chair Jerome Powell’s comments about the US economy are essential for predicting how Bitcoin (BTC) prices might change.
The results of the U.S. Federal Reserve’s FOMC meeting in late October and early November 2023 might have a small effect on both stock prices and Bitcoin (BTC). However, the real impact on the market could come from Federal Reserve Chair Jerome Powell’s remarks about the future of the U.S. economy. This will be closely watched by traders for potential market-moving signals.
Expectations and Warnings Regarding Interest Rates
Traders and investors are currently quite sure that the Federal Reserve won’t raise interest rates in the upcoming FOMC meeting. However, there’s a chance of a rate hike in the December 13, 2023 meeting, and this has led Federal Reserve officials to issue prior warnings.
In recent Fed meetings, these officials made sure that the markets didn’t get too optimistic about a softer monetary policy. The Fed Chair cautioned that many central bank officials believe it may be necessary to raise rates in the future, depending on how inflation and unemployment data develop.
Expectations and Potential Bitcoin Reaction
According to the CME FedWatch Tool, most experts don’t anticipate any changes to the Federal target rate in the upcoming FOMC meeting. However, there’s about a 19.8% chance of a 0.25% rate increase from the current 550-575 bps range. Therefore, any hints of rate hike decisions during Powell’s speech could affect Bitcoin’s price, as well as the S&P 500 and Nasdaq Indices.
Additionally, there’s been talk of a possible pause in Bitcoin’s price rally due to certain on-chain developments, such as short-term Bitcoin holders booking profits. Whether or not Bitcoin manages to surpass the $35,000 resistance level in the coming week remains to be seen.
Important:Â 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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