Fed’s policy meeting affects the crypto market rally

The likely effects of the Fed’s policy meeting are looming on the crypto market rally as traders get cautious and book profits before the meeting’s outcomes.

The crypto market rally of the initial days of December had taken Bitcoin above $44,000, displaying bullish sentiments across the market. While the targets for the market are still optimistic, the Fed’s policy meeting could be causing a slowdown in the rally. Investors in BTC and other tokens are booking profits and likely going into a wait-and-watch mode ahead of the meeting. As a result, Bitcoin is trading around the $41,000 mark in a range-bound manner.

The inflation reports of the US revealed core inflation had risen in November. It could lead to the Federal Reserve reviewing their decision on rate hikes. Experts claim the central bank may continue with the same rates till mid-2024. On the other hand, the crypto market’s recovery in 2023 is awaiting further capital inflows from the upcoming spot ETFs, rate cuts, and other measures.

Meanwhile, Blackrock, one of the investment firms applying for the ETFs, recently met with US regulators. They have applied for changes in their ETF applications. The firm has revised its ETF, making it easier for banks to participate in the product. The final decision for the approval of the changes rests with the Securities and Exchange Commission of the US.

BTC/USD 1D price chart

Bitcoin is currently trading at around $41,000 on December 13, 2023, with BTC/USD trading lower by a margin of 2.4% in the last 24 hours. Bitcoin’s market cap was trading at around $800 billion.

BTC/USD is trading higher than its 20-day EMA (39,476.38), as BTC’s 24-hour volume was at around $24.9 billion. The crypto market cap decreased by around 1.94%, trading above $1.54 trillion. BTC’s year-to-date returns are above 147.33%

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