As the financial world awaits the outcomes of today’s Federal Reserve meeting, all eyes are on the potential ramifications for Bitcoin. Austin Arnold, a seasoned crypto analyst, has provided some crucial insights into what investors might anticipate.
Federal Reserve’s Stance and Bitcoin’s Trajectory
The ongoing Federal Reserve’s two-day policy meeting has the market on tenterhooks. While most anticipate no change in the rates, it’s the subtle nuances and hints about future rate modifications that have everyone guessing. In recent months, Bitcoin has shown an upward momentum, and with regulatory wins for platforms like Binance.US, the stakes are high.
It’s evident that the numbers from June and July regarding inflation were satisfactory. However, August presented a bit of a hiccup. Despite some positive signs, like a steady labor market and a strong housing market, there are concerns.
Notably, impending medical cost hikes are predicted to affect the Consumer Price Index (CPI), potentially leading to higher inflation rates. There’s also a rising apprehension about wages inflating beyond the desired 2% mark.
While there’s a general consensus that rates might remain unchanged for this meeting, former Federal Vice Chairman, Roger Ferguson, hinted otherwise. He suggests that while this session might not see any action, the one in November could be eventful. With oil prices rising, there’s a lurking danger of inflation heading in an undesirable direction.
Bitcoin Price Analysis
Bitcoin’s recent surge past the $27,000 mark has rekindled trader optimism. After overcoming the crucial $26,800 resistance, a pattern has emerged on the 4-hour chart, pointing to potential bullish momentum. The bulls dominate this timeframe, hinting at an upward drive towards the $27,650 target.
Despite the promising trend, caution is advised. The current key support sits at $26,910. Should it dip below, Bitcoin could find solace around $26,550, with the vital $26,000 level acting as a psychological barrier against further major decline. Regardless, observing the $26,910 mark remains crucial for upcoming market strategies.
At the time of writing this article, BTC was worth $27,202.