Countdown to Fed statement
At 21:30 Tehran time tonight, the US Federal Reserve will meet to decide on the rate of increase in bank interest rates, and the results will be announced in a press conference a few hours later. Experts say the outcome of this meeting is important in the short term for the digital currency market; But over time, the impact of the new US monetary policy on the market will diminish.
To Report The price of bitcoin, bitcoin and other digital currencies rose slightly yesterday, with the US Federal Reserve announcing plans to raise interest rates tonight.
Experts expect the US Federal Reserve to raise interest rates by 0.25% at each stage. This increase could exacerbate the recent monetary conditions in the United States, which have pushed up the price of risky assets in recent years. It is also possible that the US Federal Reserve will decide to further reduce its balance sheet figure by about $ 9 trillion.
While a fourth round of talks between Ukrainian and Russian officials took place on Monday, no agreement has yet been reached on a ceasefire.
Since yesterday, bitcoins have been less profitable than coin coins. This means that in these few days, the tendency of investors to accept risk has increased to some extent. The price of Bitcoin has risen 2% in the last 24 hours, while Atrium and The Graph have risen 5% and 20%, respectively.
Investors’ distrust of the market remains palpable, and Fundstrat Global Advisors says:
The rate of capital (cost of holding long positions in the permanent futures market) for permanent Bitcoin futures is uncertain and it can not maintain its position in the negative or positive area for a long time. This shows that traders in this period are reluctant to predict the market and engage their capital.
The sales pressure is gradually decreasing
Some analysts expect further sales pressure in high-risk asset markets such as digital currencies and stocks to ease.
MRB Partners recently wrote in a report:
Key capital market indicators show that the growth rate of global markets has slowed down to some extent. With tensions easing between Russia and Ukraine, global stock markets could experience significant growth.
The growth of the stock market can be a positive sign for digital currencies, as the price of bitcoin during this period has been highly correlated with the performance of these markets.
Market participants expect the US bank interest rate to increase by 0.25% in 7 stages and by the decision of the Central Bank in each stage. Over time, if the US Federal Reserve does not adopt surprising policies, the market will react less to changes in interest rates and the rate of price fluctuations will decrease.
In the digital currency market, traders’ sentiment is falling sharply; But it is also possible that with rising prices, a large number of existing shorts (sales) opportunities will be liquidated.
The chart below shows the “peak-to-bottom” fall in bitcoin prices and global stock markets. As you can see, the recent decline in the Bitcoin market, the European stock market and the Nasdaq has been severe; But not as much as the previous fall. However, in the Chinese stock market of Chinese companies, the recent decline has been more severe than the previous one.