If the Fed raises interest rates, will Bitcoin price rise?
The FOMC minutes will be released today at 19:00 UTC (14:00 ET), with minimal to no impact on the broader cryptocurrency market. Bitcoin, Ethereum, and other top altcoins are not going as expected. Most of the top coins fell as the Fed minutes were released.
While Bitcoin (BTC) is still falling near the $37,000 mark, Ethereum (ETH) is facing a red candle. Meanwhile, gold prices surged to a more than two-week high on Tuesday as the dollar fell on hopes the Federal Reserve would stop raising interest rates.
Bitcoin price could rise if the Fed raises interest rates
If the Federal Reserve raises interest rates again, it is expected that Bitcoin may be about to rise. CPI data from the U.S. Bureau of Labor Statistics (BLS) shows that CPI has mostly been on a downward trend since September. This could be a sign that the purchasing power of the dollar is waning, so people are looking for alternatives.
The Federal Reserve kept interest rates steady at its second consecutive meeting in March, opting to do so after raising rates in September.
Rates are reported to be stable in a range of 5.25% to 5.5%, but minutes from the policy meeting from March 31 to September 1 are expected to reveal a range of views on the potential need for further rate hikes.
Experts and analysts predict that Bitcoin will not fall further below $30,000 in the short term. In a recent X post, prominent cryptocurrency analyst Willy Woo shared an on-chain analysis suggesting that Bitcoin (BTC) is unlikely to fall below $30,000.
Furthermore, Woo wrote that after Bitcoin approached its halving, investors paid prices that never retested support levels again. This means that Bitcoin’s current support level of $30,000 will not be affected.
In another X post, Bitcoin maximalist Michael van de Poppe shared a Bitcoin price chart claiming that BTC has tested resistance four times in a row. This makes the resistance weaker and the price may break out soon. He also predicted that the price could rise to $40,000.
Cryptocurrency markets fall ahead of Federal Open Market Committee (FOMC) meeting minutes
On the other hand, top altcoins such as Ethereum, XRP, and BNB have shown no such movement. Most of the top altcoins are in red today. The global cryptocurrency market capitalization currently stands at $1.46 trillion, up 24% in the past 0.8 hours.
Total cryptocurrency trading volume on the previous day was $6.84 billion. Bitcoin has a 49.7% market share, while Ethereum has a 16.5% market share. Will today’s release of FOMC minutes lead to a surge in cryptocurrency prices?
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