- Bitcoin’s price increased by around 1.50% in the last 24 hours, approaching $27,200, after briefly exceeding $27,400 to reach this month’s highest levels.
- Investors will carefully examine signals from the Fed as they consider whether another interest rate hike will occur in November or if rates will be kept at their current levels.
- Ahead of the Federal Reserve decision, traders have significantly turned bullish on Bitcoin perpetual futures, the most liquid crypto market.
Bitcoin prices saw a significant increase ahead of the FED’s interest rate decision; All eyes on Wednesday! Global markets will determine their direction with the FED’s statements.
Bitcoin Price Rises Ahead of Fed Decision
On Tuesday, Bitcoin and other cryptocurrencies rose as digital asset traders overwhelmingly continued to bet on an increase in value, signaling an early wave of optimism in a relatively calm market.
Bitcoin’s price increased by around 1.50% in the last 24 hours, approaching $27,200, after briefly exceeding $27,400 to reach this month’s highest levels. The recent rally in the largest digital asset represents another attempt to break above the $26,000 region, where it has been stagnant for over a month, with historically low volatility and trading volume as investor interest wanes.
Katie Stockton, Managing Partner at technical research firm Fairlead Strategies, stated, “Bitcoin is testing its first resistance around $27,200 at the 50-day moving average as part of a short-term oversold bounce that held the significant support around $25,200.”
Cryptocurrencies like Bitcoin, along with traditional markets like the Dow Jones Industrial Average and S&P 500, are poised to move after the Federal Reserve’s latest interest rate decision on Wednesday.
The central bank is expected to keep interest rates steady, but investors will closely scrutinize signals from the Fed as they consider whether another interest rate hike will occur in November or if rates will be kept at their current levels. High-interest rates have made it less likely for investors interested in risky assets to buy when safe assets such as cash or government debt offer higher yields.
Increasing Open Positions in Bitcoin
Ahead of the Federal Reserve decision, traders have significantly turned bullish on Bitcoin perpetual futures, the most liquid crypto market. The capital amount tied to active derivative contracts on the largest crypto exchange, Binance, increased by 3% in the last 24 hours to exceed $3.2 billion.
Yuya Hasegawa, an analyst at the crypto exchange Bitbank, said, “Some participants in the crypto market may be positioning themselves ahead of the Fed meeting this weekend, where rate hikes are expected to stop.” He added:
“Bitcoin’s rise will likely come to a halt until the outcome of this month’s Fed meeting as there won’t be any major economic data releases.”
Aside from Bitcoin, the second-largest crypto, Ethereum, rose slightly above 1.643 dollars with an increase of just over 1%. Smaller tokens or alternative cryptocurrencies were livelier, with Cardano up 2% and Polygon up 3%. Memecoins appeared calmer, with Dogecoin and Shiba Inu advancing 1% each.
