Bitcoin prices are in flux this Wednesday in anticipation of the US Federal Reserve’s interest rate announcement.
The market widely expects the Fed to throw another 25-basis point (bps) rate hike on the table, bringing the base lending rate to 5.25% and marking to 10th straight increase in borrowing costs.
However, there is a possibility that the doves will win out and put a cork in future hikes altogether, especially given First Republic North’s inevitable takeover.
A dovish surprise could provide the momentum BTC bulls need to push the world’s largest cryptocurrency higher.
One thing to note is the weakness in the US Dollar Index (DXY), which has declined a solid half a percent in the past two trading sessions thus providing additional tailwinds to bitcoin.
Ethereum (ETH) closed Tuesday 2.2% higher at US$1,870, where the ETH/USDT pair has stuck to this morning. Sell pressure remains at the 1.9k price point.
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