While crypto investors anticipate the bull run in its full form, the market is set to observe another shake-up. This upset is expected to happen as the Federal Reserve (FED) prepares to reveal its first interest rate decision of 2024.
According to statistics from the CME Group, the interest rate has a 96.9% chance of not changing, raising concerns in the digital asset space.
However, the recent March decision, indicating a potential 47% likelihood of a 25 basis point (bps) rate cut, has left investors uneasy.
Compounding this economic uncertainty, the United States is poised to unveil the January unemployment rate, potentially exerting additional influence on market sentiment.
Long before the invention of cryptocurrencies, the Federal Reserve's take on interest rates played a major role in determining the state of the economy.
Crypto, however, has been affected by fundamental events and stands to feel the impact of the interest rate.
Although the chances of the interest rate staying the same are high, it's worth noting that a change can still occur.
Staying unchanged could maintain the status quo, allowing the prices of digital currencies like Bitcoin (BTC) and Ethereum (ETH) to remain steady.
Crypto investors are aware of a cut in the Federal Reserve interest rate, which could bring unexpected price movements in the market.
Examining the Bitcoin chart reveals a noticeable struggle between bullish and bearish forces. The key focal point for observation is the $42,500 threshold, a level Bitcoin has recently been challenging.
This particular level holds significance, as a definitive closure above it might indicate a surge in bullish momentum.
Conversely, on the downside, traders are anticipated to vigorously defend the support level situated around $39,528. This level coincides with both a psychological round number and a former area of market interest.
While the financial market waits for the announcement, Bitcoin traders would prefer to stay optimistic. The decision could be responsible for BTC's next big move, taking it above the resistance level for a bullish pullback.
A drop in the interest rate would cause uncertainties in the crypto market, leading to more drops in new support levels.
The current market price of Bitcoin stands at $42,571.75 per BTC/USD, boasting a market capitalization of $834.93 billion. Over the past 24 hours, the trading volume has reached $16.83 billion, reflecting real-time updates in the BTC to the USD exchange rate.
In the last 24 hours, Bitcoin has experienced a positive growth of 0.58%, and it currently circulates with a supply of 19.61 million.
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