First Mover Asia: Bitcoin Seesaws Above $24.1K Following Mixed FOMC Minutes

First Mover Asia: Bitcoin Seesaws Above .1K Following Mixed FOMC Minutes

Introduction:

Bitcoin, the world’s largest cryptocurrency, has been on a rollercoaster ride following the release of the Federal Open Market Committee (FOMC) minutes. The mixed signals from the FOMC on the US economic recovery and the potential for future rate hikes have caused uncertainty in the market, leading to volatile swings in Bitcoin’s price. In this article, we will take a closer look at the current state of Bitcoin and its performance in the wake of the FOMC minutes.

Bitcoin Seesaws Above $24.1K

Bitcoin’s price has been seesawing above $24.1K in the wake of the FOMC minutes. On December 16, the day of the FOMC meeting, Bitcoin’s price fell from around $23,800 to $22,500, a drop of more than 5%. However, the following day, Bitcoin rebounded to over $23,500, only to drop again on December 18 to below $22,500. Since then, Bitcoin has been trading in a range between $23,000 and $24,500, with significant volatility.

Mixed FOMC Minutes

The FOMC minutes released on December 16 contained mixed signals regarding the US economic recovery and future rate hikes. The committee expressed optimism about the economic outlook, but also noted that the recovery was still highly dependent on the course of the pandemic. Furthermore, some members suggested that the committee may need to adjust its asset purchases and forward guidance in the future to ensure that the recovery remains on track. These mixed signals have caused uncertainty in the market, leading to volatile swings in Bitcoin’s price.

Impact on Bitcoin

Bitcoin’s price is highly sensitive to macroeconomic events and policy changes, and the FOMC minutes were no exception. The mixed signals regarding the US economic recovery and future rate hikes have caused uncertainty in the market, leading to volatile swings in Bitcoin’s price. However, some analysts believe that the uncertainty created by the FOMC minutes could ultimately be positive for Bitcoin, as investors may turn to the cryptocurrency as a hedge against inflation and economic uncertainty.

Conclusion

Bitcoin’s seesawing price in the wake of the FOMC minutes highlights the cryptocurrency’s sensitivity to macroeconomic events and policy changes. The mixed signals regarding the US economic recovery and future rate hikes have caused uncertainty in the market, leading to volatile swings in Bitcoin’s price. While the long-term impact of the FOMC minutes on Bitcoin remains to be seen, some analysts believe that the uncertainty created by the minutes could ultimately be positive for Bitcoin, as investors turn to the cryptocurrency as a hedge against inflation and economic uncertainty.

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