Crypto prices are influenced a lot by news, FUD, and regulations. And the Fed meeting next is critical and could bring another huge fluctuation in the market. The prices have already taken a toss a while back, and if things go wrong, we could be in for another crash. For now, the prices have recovered a bit, but no substantial support has been reclaimed for us to become bullish. This is why it will be important to keep a close eye on the Federal Reserve Monetary Policy meeting.
The main agenda of the meeting
The meeting was supposed to last 2 days and today is going to be the 2nd one. Feds are planning to reduce the 120-billion purchase monthly rate to 30-billion a month. In case they start to print less money, the inflation rates won’t go any higher, which is good for the economy but not for Bitcoin. The price of Bitcoin has already corrected a lot from its all-time high, but if we see another correction, we might be looking at $40k for the next support.
The BTC price correction
A lot of researchers are predicting that the uncertainty factor is the main reason why BTC is going down. One of them is Lennard Neo, head of research at Stack Funds. BTC is a risk-on asset because of its huge volatility, and this is why such price corrections are happening. Another simple reason for this is when people do not want to buy an asset at a particular price level, we see it fall in value. The same has been happening for Bitcoin. I don’t think there is still enough acceptance that BTC will eventually reach $100k and higher.
Good part
Due to the uncertainty of what the fed’s meeting will bring, coupled with the current price action, there is extreme fear in the market. Now, why is this good? This is because extreme fear is often followed by price increases, and similarly, when there is extreme greed, prices dump because whales tend to sell at those levels. So, seeing the current scenario, I am expecting if the FED meeting doesn’t affect the market much, we could recover soon.
What are your thoughts on the Fed meeting that could be critical for Bitcoin? And do you think that we will see a price increase anytime soon? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Ethereum is more undervalued than Bitcoin, says Cathie Wood.