Bitcoin Remains Muted Amidst FED Rate Hike Rumors ⋆ ZyCrypto

Market Veteran On Why Bitcoin Price Is 'On The Brink Of A Strong Breakout'

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Despite seemingly enjoying the air above $19,000, Bitcoin’s price hasn’t moved much as the stuttering global economy continues to spook investors. 

Since September 20th, the top cryptocurrency has remained between $18,250 and $20,370, with volatility being further sapped in the past two weeks. This weakness has been mirrored in Ethereum, trading mainly in the $1,340-$1,260 range, with other major altcoins staying largely flat.

Apart from the UK’s sky-high inflation and political uncertainty caused by the untimely resignation of Prime Minister Liz Truss, investors in the U.S. have also had to deal with the anxiety that the Fed is creating. On Friday, the WSJ reported that the Fed was mulling introducing a 75 basis points rate hike in their November meeting and “likely to debate then whether and how to signal plans to approve a smaller increase in December.”

Whereas the report was mainly inferred from past statements by Fed’s chair Jeremy Powell and Governor Christopher Waller, several Fed officials support a 0.75 point since previous rate hikes haven’t brought much progress in combatting inflation.

Even so, the CME FedWatch tool currently shows that 50% of investors expect that the Fed’s Federal Open Market Committee (FOMC) will raise rates by 50 basis points in December to avert a further economic catastrophe as a result of too much tightening.

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Whereas Bitcoin remains largely unperturbed save for a sharp drop in volatility, experts believe that further rate hikes may lead to a sizeable bounce.

According to Dan Tapiero, founder and CEO of crypto-focused equity fund 10T holdings, unlike gold which is a hedge for assets in the traditional system, “bitcoin is a warrant on the future.” He warns that the FED policy driving a generation of investors away from stocks and bonds.

Digital Asset Ecosystem to benefit in years to come. Transition moment right in front of us. 5% allocation to Bitcoin and ETH is now too small,” said Tapiero.

Crypto pundit James Lavish also sees danger in central banks pulling a coordinated global monetary policy that seeks to unwind inflation unanimously. “How will this work? It won’t without CBDCs and total control.” Lavish Tweeted on Saturday. “Opt-out. Buy some Bitcoin and protect yourself,” he advised.

Technically, BTC seems to be firmly entrenched along support in the $18,250-$19,500 range with little impetus to break outside the range in either direction. This support, however, becomes more fragile as the price continues to tap into it.

BTCUSD Chart by TradingView

As of writing, Bitcoin was trading at about $19,479 after a 0.19% drop in the past 24 hours. The price has barely nudged in the past seven days, gaining by a meagre 0.33%.

Source: https://zycrypto.com/weekly-market-wrap-bitcoin-remains-muted-amidst-fed-rate-hike-rumors/