- While Bitcoin (BTC) prices remained almost unchanged in the last 24 hours, significant tokens gave back the gains they obtained from the early November rallies.
- Analysts at Bitfinex crypto exchange said in a note shared on Tuesday that they expect the Fed to keep interest rates steady in the December meeting.
- The price of BNB increased by up to 8% on news that Binance, the crypto exchange that initially issued the tokens, would pay $4 billion soon to resolve various charges in the United States.
Bitcoin price has not been successful in surpassing the critical barrier of $38,000: The Fed’s interest decision and analysts’ future price expectations!
Bitcoin Unable to Reach $38,000
While Bitcoin (BTC) prices remained almost unchanged in the last 24 hours, significant tokens gave back the gains they obtained from the early November rallies. BTC increased by 0.6% on Tuesday, trading just above $37,220. Ether (ETH) lost 0.5%, while other cryptocurrencies like Dogecoin (DOGE) and Solana (SOL) dropped by up to 5%, likely due to investors taking profits.
Tokens of BNB Chain (BNB) rose by up to 8% initially on news that Binance, the crypto exchange that initially issued the tokens, would pay $4 billion soon to resolve various charges in the United States.
Some traders expect Bitcoin to trade sideways in the coming weeks as its recent rally faces challenges due to uncertainty about the Federal Reserve’s next steps and delays in a significant regulatory decision on ETFs.
Analysts led by Yukari Kusu from the Japanese exchange Bitbank said, “The upward movement is currently suppressed at the $38,000 psychological level,” and added, “One reason Bitcoin cannot surpass this level is the SEC delaying its decision on Thursday on the approval or rejection of Hasdex’s Bitcoin ETF.”
Will the Fed continue to keep interest rates steady?
On the other hand, analysts at the Bitfinex crypto exchange said in a note shared on Tuesday that they expect the Fed to keep interest rates steady in the December meeting. The analysts stated, “Headline inflation has significantly dropped from 6.4% at the beginning of the year. This should give the Fed enough room to keep interest rates steady at the December meeting, which will be in line with current expectations in the Fed Futures market,” and continued:
“This pause does not indicate a change in interest rate hikes, but the Fed is ready and cautious to adjust interest rates if inflation persists or unexpectedly rises.”
Analysts concluded their statement as follows: “Interest rate decisions tend to move markets. Higher interest rates often negatively impact assets such as stocks and cryptocurrencies, risk assets where investors can profit by investing in bonds.”
