Crypto alarm clock: Bitcoin moves violently after interest rate decision, 1:30 pm becomes important
Bitcoin made a nice rise after Kevin Warsh's speech yesterday, but a hard blow was dealt last night. Here's what you need to know.
Bitcoin (BTC) is headed in all directions following the US central bank's decision last night to keep interest rates the same. At first we saw a nice increase, but last night the price got another beating.
This afternoon it will be exciting again when important inflation figures from the United States are published. What can we expect?
Bitcoin reacted particularly positively to chairman Kevin Warsh's press conference yesterday. At 7:30 pm, he began his speech and an hour and a half later, the coin was worth nearly $1,000 more.
Bitcoin rose from $80,800 to $81,700, but last night the price dipped back below $80,000. Just like yesterday earlier in the day, a nice jump was swept off the table in a short time.
Bitcoin was able to benefit from the falling two-year interest rate, which tells us that investors expect a slightly less strict central bank. And that's because Warsh said his approach is starting to work against inflation.
At the same time, he also acknowledged that inflation is still far too high and the central bank remains determined to reach the hard target of 2 percent.
Warsh said that the information for the coming period should help the Fed determine which direction interest rate policy is headed. At the moment, the focus is mainly on inflation and this afternoon the central bank's favourite inflation meter will be published.
This afternoon at 1:30 pm, the PCE Price Index will be announced and that could once again cause fireworks in the markets.Download the Newsbit app and get an instant push notification after the numbers.
Lower figures would benefit Bitcoin and the crypto currency could use some support again.
The price does not detach itself from the $80,000. The good news is that there was little trading volume behind the recent decline and Bitcoin continues to defend the support level. However, the price is now below the 50-day averages.
At the time of writing, the BTC price is at $80,015, 1.02 percent lower than 24 hours ago.
The rest of the market follows Bitcoin closely. The majority of the crypto coins also surrendered a nice increase last night.
Ethereum (ETH) is 1.58 percent lower than yesterday, Ripple (XRP) 2.18 percent and Solana (SOL) 1.82 percent. Privacy coin Zcash (Zec) is the big loser within the top 20 with a minus of 5.04 percent.
It could be even worse, because MemeCore (M) is the largest drop in the top 100 with a loss of 7.97 percent. Competitor Pepe (PEPE) is doing surprisingly well again with an increase of 5.29 percent.