Here’s how Bitcoin reacted to the latest Fed rate hike

10 months ago 62

  • The FOMC has accrued its rates to the highest level since 2001.
  • BTC terms somewhat accrued arsenic its societal dominance spiked to the FOMC report.

Amidst a whirlwind of speculations, the long-awaited FOMC study has yet been released. Leading up to its release, this study has been the speech of the municipality successful the crypto space, with everyone eagerly awaiting its interaction connected Bitcoin’s societal dominance. But the question remains: however did the latest FOMC study impact BTC? 

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FOMC study shows hike resumption

In an eagerly awaited decision, the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve wrapped up its two-day argumentation gathering connected 26 July. After a little pause, the committee resumed complaint hikes. It pushed the benchmark fed funds complaint by 25 ground points, mounting the targeted scope astatine 5.25%–5.50%. This marked the astir important complaint summation since 2001, sparking a flurry of societal reactions, according to Santiment data.

Interestingly, this surge successful societal interactions hinted astatine an archetypal affirmative effect from the crypto market, with Bitcoin besides reaping immoderate benefits from the situation. As the particulate settled, the complaint hike’s interaction connected the cryptocurrency scenery became evident, leaving enthusiasts and investors anxious to spot however this unfolding lawsuit would signifier the aboriginal of integer assets.

Bitcoin’s societal dominance rises

In the aftermath of the FOMC’s complaint hike determination connected 26 July, Bitcoin assumed a much salient presumption successful the crypto discourse, evident from the societal dominance metric. Before the FOMC announcement, BTC’s societal dominance had experienced a dip of astir 22%.

However, the script rapidly changed aft the announcement, with societal dominance skyrocketing to implicit 26%. Though presently astatine astir 25%, it remains higher than its pre-FOMC level.

Bitcoin societal  dominance

Source: Santiment

This notable summation successful societal dominance is often associated with a consciousness of fearfulness among marketplace participants, which interestingly tends to heighten the likelihood of a terms surge.

As we observe the dynamics of this situation, there’s a palpable consciousness of anticipation successful the crypto community, with galore keeping a adjacent oculus connected Bitcoin’s terms movements to spot however this fear-driven sentiment mightiness signifier its trajectory successful the coming days.

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BTC reacts positively to the FOMC update

On 26 July, the regular timeframe illustration of Bitcoin displayed a glimmer of anticipation arsenic it witnessed a flimsy summation successful value, managing to adjacent with a profit. Notably, during that trading session, it came tantalizingly adjacent to reclaiming the $30,000 terms range, a level it had fallen disconnected previously. As of this writing, it was trading astatine astir $29,500, with a insignificant uptick successful its value.

BTC/USD terms  move

Source: TradingView

Despite this caller affirmative movement, the wide Relative Strength Index (RSI) indicator remained bearish. However, the consecutive rises successful its worth person injected a spot of optimism into the picture, giving it a hint of an uptrend. 

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