Bitcoin Returns Close To Key Support, But The Fed Will Likely Be Decisive
Bitcoin price is under pressure with other equity markets and is now back close to major support at around $18,000. BTC/USD had bounced off it in June, along with the major rebound in equity markets, but could push that threshold down based on new FOMC projections
Indeed, the Fed is unsurprisingly expected to hike rates by 75 basis points tonight, but officials could surprise traders by revising their interest rate forecasts too significantly for next year. . The FOMC forecast in June on a key rate of between 3.75% and 4.00% in 2023, but operators are currently expecting a rate of between 4.00% and 4.25%, including a peak at 4.50 -4.75% in spring.
Rhetoric from Central Bank Chairman Jerome Powell will also be watched very closely by market operators and is likely to influence sentiment.
After the Fed, investors’ attention will be on the release of PMI indicators for the major developed economies on Thursday. These indicators will be important for the economic outlook and therefore the sentiment of market operators.
Bitcoin price daily chart – key levels