The First FOMC Meeting of 2024: What to Expect and Its Impact on Bitcoin Price

Renewed rate cuts have always proved to be a bullish case for Bitcoin, with the price receiving a minor push. This has caused a slight rise in market sentiment, which remained passive ahead of the FOMC meeting. After the recent upswing, the BTC bulls also appear to have become more passive and the impending FOMC meeting is considered one of the major reasons. Now that the fresh rate cuts are expected to differ for the next few months, will Bitcoin and the entire crypto market trade within a narrow consolidation?

It has been observed before that the BTC price has reacted positively to a rise in FED rates, as it indicates a rise in inflation. Now the FED claims to have withstood the economic turmoil and, hence, has been softer on rates in the past few months. The fresh rates are expected to remain unchanged, which may not induce the required volatility, which may eventually assist the markets & Bitcoin price to trade within the same consolidation for some more time.

Will the BTC price be refrained from marking above $43,000 this month?

The current trade set-up for Bitcoin suggests the price is trading, keeping both the possibility of a bullish breakout and a bearish pullback open. The RSI is going parallel with the resistance and support, exactly at the average, which suggests negligible volatility at the moment. This can also be considered a ‘calm before the storm, as the sideways trade represents an accumulation phase that usually results in a bullish breakout shortly. 

Currently, the market largely believes that the FED could hold back with the rate cuts but have more chances for cuts in March. The Fed now believes that they are running close to their inflation target rate of 2%, which may further imply some changes to quantitative tightening (QT), which could end soon. However, the FED Chair, Jerome Powell’s speech, has a huge impact on the crypto space as a dovish stand may differ from the bullish possibilities, which is unlikely with the upcoming FOMC meeting.

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