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Bitcoin Hangs on Just Above $27K Ahead of Fed Rate Decision

source-logo  coindesk.com 19 September 2023 20:44, UTC

Bitcoin's (BTC) attempt at a sizable rally was snuffed out Tuesday, but the crypto managed to hold the $27,000 level and was trading at $27,180 late in the afternoon, up 1.4% over the past 24 hours.

The broader CoinDesk Market Index (CMI) was ahead 1% for the day. Notably underperforming was ether (ETH), with a gain of just 0.1%.

Earlier Tuesday, bitcoin had rallied to its highest price in three weeks at $27,475, but – as has been the pattern for months – sellers quickly emerged.

The results of the Fed policy meeting come tomorrow

The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) will conclude its two-day policy meeting on Wednesday. The FOMC is universally expected to hold its benchmark fed funds rate steady at a range of 5.25%-5.50%, but market participants will be focused on the central bank’s updated economic projections and Chairman Jerome Powell’s post-meeting press conference for clues about the future direction of monetary policy.

The FOMC’s next meeting is at the start of November, and investors are currently pricing in a 70% chance of continued steady policy. An unexpectedly hawkish lean to the updated economic projections or Powell comments could serve as a negative catalyst to both crypto and traditional markets.

Read more: Bitcoin’s Crypto Market Dominance Rises to 50% and It Could Go Higher, Say Analysts