- Bitcoin rose 0.37% ahead of the results of the FOMC meeting.
- The US Federal Reserve kept the Federal Funds interest rate at 5.25% after a long period of consecutive rate hikes.
The eyes of the market were on the announcement of the Fed rate decision at the Federal Open Market Committee (FOMC) meeting. The cryptocurrency market in general has had a turbulent few weeks. As such, all eyes were on the decision that would lead to price pump or dump.
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Bitcoin [BTC] was seen topping the charts social awareness ahead of the impending FOMC decision. A look at the 24-hour price action prior to the announcement revealed a price increase of 0.37%.
TOP COINS THROUGH SOCIAL INVOLVEMENT
Wednesday 14 June 2023, 10:01 UTC$btc $eth $sol $ada $dexthttps://t.co/Ye6Yvoh7kQ pic.twitter.com/lKif72QZST
— LunarCrush (@LunarCrush) June 14, 2023
In the aftermath of the no rate hike FOMC meeting, BTC did not stay in the green for long. The king of cryptocurrencies sank into the red to trade, switching hands down 3.34% in the last hour as of this writing.
Bitcoin Price Reaction: Before Meets After
After the announcement, BTC did not exactly witness a significant price pump or dump. The cryptocurrency fluctuated between $25,800 and $26,000. It traded at $26,000 minutes before the Fed’s announcement, before dropping to $25,756 shortly after. BTC changed hands at $25,909 at the time of going to press according to Trade view.
Source: TradingView
The Relative Strength Index (RSI) fluctuated below the neutral level of 50. This was a sign of limited buying pressure and indicated some bearish momentum. However, it can also be taken as a sign that buyers and sellers were competing in an important area. In addition, a look at the Moving Average Convergence Divergence (MACD) indicated a bearish stance for BTC.
At the time of writing, the signal line (red) was above the MACD line (line), an indication of the ongoing bearish bias. Moreover, the price movement did nothing to make up for last week’s losses. Recall that the SEC has sued two of the biggest players in the crypto industry (Binance and Coinbase) for securities law violations.
In addition, a look at the Bitcoin Fear and Greed Index was not exactly favorable for sentiment around the cryptocurrency. On June 14, the BTC fear and greed index stood at 46, indicating fear. This meant that investors were witnessing some market skepticism at the time of writing.
Source: alternative.me
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Time to buy?
News of the FOMC meeting was received with more enthusiasm to ask then answer, as some attested to the continual price instability on the market. The lingering question remained: buy or sell?
It really irks me that Powell talks about how the Fed is responsible for price stability, but takes no responsibility for creating the instability. #Fed #FOMC
— Carol Roth (@caroljsroth) June 14, 2023
To which crypto educator, Budhil Vyas tweeted that the outcome of the FOMC meeting could be bullish and promote market growth. However, the same can happen over time and sudden movements may not be an issue.
It should be a positive axis #FOMC did not raise it. NO HIKE
But due to the negative market situation, it may take some time before a MOVE💯 becomes visible https://t.co/mgTgVV1Wac— Budhil Vyas (@BudhilVyas) June 14, 2023