Geopolitical Instability and Fed's Interest Rate Decision: How Will It Affect Bitcoin?
As we enter the second week of October, geopolitical instability is on the agenda in the markets. While this issue scares many investors, what can we expect to see in the markets? Bitcoin, which failed to hold at $28,000 and was trading at $27,496 at the time of writing, may rise in such a market environment along with the opening of Wall Street, the rise of oil and gold, and the strengthening of the US dollar.
Fed's Interest Rate Decision and Bitcoin.
US data has always played a triggering role in Bitcoin prices. Despite the methods highlighted by Fed officials for inflation after the employment data announced last week, the employment level has not yet reached the desired levels. This situation could lead to a new interest rate hike decision in the US.
Investment instruments like Bitcoin, which do not guarantee income and are considered risky, have always reacted negatively to interest rate decisions. The decrease in liquidity in an environment where income is guaranteed will also put pressure on the price of Bitcoin. Popular investor CrypNuevo made the following comment over the weekend:
"A good CPI data on Thursday may provide a chance to get out of this range, while a hot CPI will push us back to the lowest levels of the range with the proposition that the Fed may be forced to raise rates by 25 basis points."
However, some analysts believe that the Fed will leave interest rates at their current levels. According to the data obtained by CME Group's data analysis service
FedWatch, analysts
are making transactions based on the expectation that interest rates will remain unchanged in the decision to be announced on November 1.
The important data to be announced in the US this week will be the Consumer Price Index (CPI) and the Producer Price Index (PPI). In addition, the market will focus on the comments of 12 Fed officials this week and the minutes of the previous interest rate decision.
As we enter the second week of October, geopolitical instability is on the agenda in the markets. While this issue scares many investors, what can we expect to see in the markets? Bitcoin, which failed to hold at $28,000 and was trading at $27,496 at the time of writing, may rise in such a market environment along with the opening of Wall Street, the rise of oil and gold, and the strengthening of the US dollar.
Fed's Interest Rate Decision and Bitcoin.
US data has always played a triggering role in Bitcoin prices. Despite the methods highlighted by Fed officials for inflation after the employment data announced last week, the employment level has not yet reached the desired levels. This situation could lead to a new interest rate hike decision in the US.
Investment instruments like Bitcoin, which do not guarantee income and are considered risky, have always reacted negatively to interest rate decisions. The decrease in liquidity in an environment where income is guaranteed will also put pressure on the price of Bitcoin. Popular investor CrypNuevo made the following comment over the weekend:
"A good CPI data on Thursday may provide a chance to get out of this range, while a hot CPI will push us back to the lowest levels of the range with the proposition that the Fed may be forced to raise rates by 25 basis points."
However, some analysts believe that the Fed will leave interest rates at their current levels. According to the data obtained by CME Group's data analysis service
FedWatch, analysts
are making transactions based on the expectation that interest rates will remain unchanged in the decision to be announced on November 1.
The important data to be announced in the US this week will be the Consumer Price Index (CPI) and the Producer Price Index (PPI). In addition, the market will focus on the comments of 12 Fed officials this week and the minutes of the previous interest rate decision.