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A sudden dip accompanies squabbling over Fed rate hike policy, with BTC price action recovering lost ground. 1030 Total views 20 Total shares Listen to article 0:00 Market Update Bitcoin (BTC) dipped further below $19,000 on Oct. 21 as rumors circulated over the United States Federal Reserve.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewFed still on track for major November rate hike
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD abruptly dropping before the Wall Street open, hitting lows of $18,660 on Bitstamp.
A recovery took the pair higher, and it was attempting reclaim $19,000 as support at the time of writing.
The action came as commentators claimed the Fed was softening its policy on rate hikes ahead of the Nov. 12 Federal Open Market Committee (FOMC) meeting.
Citing mainstream media quotations from Fed officials, they suggested that the November hike could be the last 75-basis-point adjustment, with smaller ones following.
Some officials are more eager to calibrate their rate setting to reduce the risk of overtightening, Nick Timiraos, chief economics correspondent at the Wall Street Journal, summarized. But they wont want to dramatically loosen financial conditions if and when they hike by 50 bps (instead of 75). This meeting could allow officials to get aligned on next steps.
Timiraos came in for skepticism following his words, with some accusing him of “leaking” data that would be sensitive for markets.
“How silly that there’s a designated Fed leaker that can drop a timely tweet thread and instantly impact global markets,” popular commentator Stack Hodler wrote.”Imagine the havoc if someone hacked this guys account and leaked a 100bps raise. Yields rocket and we get UK pension crisis 2.0 what a janky monetary system.”
According to CME Groups FedWatch Tool, the odds of a 75-basis-point hike next month remained almost guaranteed, with a mere 6.2% chance of 50 basis points.Target rate probabilities chart. Souce: CME GroupDollar retreats after yen seals more lows
U.S. equities saw a confident start to trading on the day, while the U.S. dollar swiftly lost ground after earlier causing fresh pain for trading partner currencies.
Related:Global recession may last until near 2024 Bitcoin halving Elon Musk
The U.S. dollar index (DXY) was below 113 at the time of writing, having spiked to near 114 hours prior.U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
Its all about DXY and the consolidation between recent highs and D1 uptrend, popular crypto trader and analyst Pierre explained, citing the earlier analysis.
In a sign of how problematic the dollar’s rise was becoming, the Japanese yen weakened past the psychologically significant 150 mark a 32-year low.
“Unless the BOJ gives in in its bond yield suppression, the yen will continue to power lower. JPY 150 breeched,” Alasdair Macleod, the head of research for Goldmoney, forecast.USD/JPY 1-month candle chart. Source: TradingView
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision. #Bitcoin #Federal Reserve #Japan #Dollar #Bitcoin Price #Markets #Bank of Japan Related News The concept and future of decentralized Web3 domain names Are crypto winters the hottest time to hire? | Find out in our live AMA Crypto hacks are set to hit all-time highs in 2022, analyst explains Price analysis 10/7: SPX, DXY, BTC, ETH, BNB, XRP, ADA, SOL, DOGE, MATIC Post-midterm elections dump? Bitcoin will see $12K if this 2018 BTC chart fractal is correct New Fidelity report flags stark contrast between Bitcoin and fiat currencies