The Fed’s decision to pause interest rate hikes was a welcoming move, but the implications of a future hike caused high crypto volatility in the market.
The crypto market went through high volatility in the last 24 hours with the outcome of the FOMC meeting. The Federal Reserve held interest rates steady but hinted at future hikes to control inflation. The wide-ranging sentiments in the market increased the crypto volatility.
Initially, Bitcoin saw a dip towards the range of around $26900. It promptly recovered after some time, going above $27000 like earlier. As a result, the crypto market cap held steady, with its value at over $1.07 trillion.
BTC is facing resistance at the level of its 50-day moving average. It could indicate the active participation of bears around that mark. Long-term investors have continued to buy crypto, while institutional investors saw more outflows from crypto in the last few days.
If Bitcoin sustains above its 20-day moving average for a long time, it could see gains to $29000. On the other hand, uncertainty from the Federal Reserve may continue to hinder its recovery.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent,” said the Federal Reserve.
BTC/USD 1D price chart
Bitcoin is currently trading at around $27000 on September 21, 2023, with BTC/USD trading higher by 0.1% in the last 24 hours. BTC/USD is trading higher than its 20-day EMA (26,319.51) as BTC’s 24-hour volume stabilized at around $12 billion. Bitcoin has seen around 63.24% returns on a year-to-date basis.