It’s almost lunchtime again. For us, a great time to look at the live Bitcoin (BTC) price and current prices of the top 25 crypto. Then we zoom in on this week’s price-setting event for Bitcoin (BTC), the Fed’s interest rate decision.
We begin, of course, with the live Bitcoin (BTC) price and the prices of the top 25 crypto.
Live Bitcoin (BTC) price and prices top 25 crypto positive
At the time of writing, the live Bitcoin (BTC) price is quoting EUR 20,991.36 ($21,300.01). This is 0.83% higher than yesterday around this time, but 3.40% lower than during our Bitcoin lunch last Monday.
The prices of the top 25 crypto are generally positive. There are some red numbers though. Besides the stable coins, only Cardano (ADA) is posting a loss of 1.02%. The biggest gain is currently for Ethereum Classic (ETC) with +15.39%. On the site of Tradeincrypto.com you can analyze all live crypto prices 24 hours a day.
Bitcoin (BTC), crypto and financial markets under the spell of FED interest rate decision
Today the FED (the US central bank) makes its final interest rate decision before the summer. In doing so, a difficult choice lies ahead. Inflation has risen to record levels (in June to 9.1%). To curb it, a sharp rise in interest rates would be the appropriate means, but that would increase the chance of a recession and that, of course, would not be good for the economy either.
At the beginning of this year, the Fed indicated that it wanted to raise interest rates in steps of 0.5%, but it had to change its mind. During the previous interest rate decision they raised the interest rate by 0.75%. The question is obviously what the FED will decide today. We saw that the markets can react violently to the interest rate decision, but also to the explanatory statement. This is important because the FED can give indications for future interest rate decisions.
The financial markets have factored in another 0.75% increase. A lower interest rate step will undoubtedly lead to rate increases, while an increase of more than 0.75% could put pressure on the financial markets. Investors will then opt for less risky investments.
Correlation and inflation hedge determine sentiment
This sentiment will also apply to the crypto market and thus the Bitcoin (BTC) price, but there are 2 more factors at play.
On the one hand, there is the correlation between the Bitcoin (BTC) price and prices of tech stocks (for example, the NASDAQ index). This is very strong, so the expectation is that the BTC can react in line with tech stock prices.
In addition, BTC enthusiasts argue that Bitcoin would provide a safe haven against inflation because Bitcoin’s market capitalization is fixed at 21 million BTC. So far, we are not seeing this effect immediately, but only over the longer term. Tesla’s recent sale of BTC makes the likelihood of an immediate effect a little smaller. So it will be an exciting day for BTC and thus the crypto market. The announcement will be made tonight from 8 p.m. Dutch time and the American financial markets will still be open. We are curious.
BTC bears: exhausted or gathering strength?
Seeing that the price has fallen since Monday, it seems that the bears are regaining strength, but appearances are deceiving for now. The fact that the BTC dipped below $21,000, but is now trading above it again seems to imply that the bears are exhausted and that there is room for further recovery.
On the other hand, the Bitcoin price is still trading below its 200-week moving average, and as we saw on Monday, this indicates that a bearish price trend is still a possibility.
We are now seeing a positive, but wait-and-see attitude ahead of the Fed interest rate decision. We also see this picture in other financial markets. Therefore, we conclude with the key Bitcoin quotes to follow after the FED interest rate decision.
What does the Bitcoin (BTC) price do after the FED interest rate decision? These are the key rates
First, of course, it is important to estimate the impact of the interest rate decision. As we indicated, the market has estimated a 0.75% increase. In doing so, the futures market shows that one takes into account a 20% chance of a 1% increase. Other variants are not likely.
The Bitcoin (BTC) price is expected to react positively to a 0 to 0.75% increase in price, while a higher increase offers a chance of price decline.
The key price for the Bitcoin (BTC) price is $21,710. As with the previous announcement, the Bitcoin price may fall briefly and quickly immediately after the publication of the Fed decision, but it is important that the daily price closes at or above $21,710. If this happens there is an opportunity for a 15% price increase to $25,000. The resistances around $23,000 and $24,000 are then of less importance.
If the day’s closing price falls below $21,710.00 we should expect a price reduction of about 15%, with the support level at $19,286.00 with backups at $18,638.00 and $17,605.00.
So it will be an exciting day, where it is wise to prepare for making money in an uncertain market, so that you can arm yourself against a (too) strong price drop, but also react to unexpected price jumps.
Want to stay up to date with the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”