Bitcoin Trades With No Specific Direction Ahead Of The Fed Decision

The vast majority of US stocks and the largest cryptocurrency in the global economy, Bitcoin, are trading sideways as traders and investors anxiously wait for the outcome of the Federal Reserve meeting going on Wednesday to be made public.

The US Federal Reserve is expected to release an official statement to that effect at 2 p.m. Eastern time and then by Jerome Powell’s news conference at 2:30 p.m., which is expected to make the latest development of a quicker wedging of the operation of buying bonds public.

Hence, that could serve as the propelling force that’ll trigger the economy to slide into inflation and interest rate increases and it might commence right from the second quarter of the year 2021.

Meanwhile, the Bitcoin BTCUSD currency pair -2.73% was recently trading within the axis of $46,970, down 0.02% over the last 24 hours. On the other side, Ether ETHUSD, -3.90% dipped 2.55% within the last 24 hours and it is recently trading within $3,688.

With various degrees of instabilities and uncertainties, Bitcoin has dipped way more than 30% from its all-time breathtaking peak of $68,991 back in November. In the same vein, Ether is also down with over a 20% decline from its record hit of $4,865.6.

Significance Of The Federal Reserve On The Economy

This tide of events implies that as Bitcoin and the global digital economy strive to evolve and solidify, the Federal Reserve is a very important stakeholder whose operations on cryptocurrency can, in no way, be underestimated.

The tenure and large-scale events of the Fed can have an unquantifiable effect putting the world of cryptocurrency on the track where it belongs in this digitalized era.

Flowing from the above, every possible decision that the Federal Reserve might reach after its crucial meeting needs to be considered. Through that, we will project into the possible impacts of the decision on the economy.

If the Fed turns less militant and threatening than the market needs or expects, there is a high possibility of the leading cryptocurrencies getting rekindled and up.

Our age is in a very critical moment, so if there’s a failure on the part of the Federal Open Market Committee meeting to generate explosive headlines that’ll trigger buying opportunities, crypto market prices might still experience more days of decline ahead.

Our readers need to note that the US Federal Reserve is not the only bank feeling the steam from the rising inflation and interest rates.

Information on the retail sales charts shows a load of a slump last month even though October was strong. Retail sales in the US rose at the rate of 0.3% in November, and that’s significantly lesser than the estimates of experts that clamor for an increase of 0.8%.

Effects Of Inflation of Digital Assets On The United Kingdom

The United Kingdom also had its share of the cake when inflation strikes her with the highest level since the last 10 years. Consequently, it amasses a load of tension on the Bank of England to spur up interest rates.

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