Bullish or Bearish? Here’s How the FOMC Statement Will Impact Bitcoin’s Price

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The much-awaited Federal Open Market Committee (FOMC) statement by the United States Federal Reserve, scheduled for Wednesday, is anticipated to have a significant impact on the price of Bitcoin, leading to increased volatility. Given that the US dollar constitutes a substantial 58 percent share of the global reserve currency, its economic prospects are closely intertwined with those of Bitcoin’s future.

What Does FOMC’s Statement Mean for You?

The FOMC statement’s revelations on the Fed’s monetary policy hold profound implications not only for stock traders but also for crypto investors. Leading crypto analyst, Kyledoops, renowned for his insights on the well-followed YouTube channel Crypto Banter, boasting over 642k subscribers, shares his predictions on how Bitcoin’s price may be affected.

Potential Scenarios

According to Kyledoops, if the FOMC statement prompts the Fed to implement measures aimed at bolstering the US dollar against surging inflation, such as interest rate hikes, borrowers may turn to decentralized finance (DeFi) platforms that offer more attractive loan interest rates. Simultaneously, the rising interest rates have already caused home mortgages to become increasingly costly to maintain.

For risk-averse investors, Kyledoops advises considering a stop loss just below yesterday’s closing price, which stood at around $29k, while aiming for a take-profit point of approximately $30.1k. On the other hand, traders willing to endure higher volatility could set their stop loss below recent lows, at approximately $28.8k, with a similar take-profit target in mind.

Read More: Week’s Schedule Revealed: 6 Macro Events That Will Shape the Crypto Markets

Caution Recommended!

Despite the positive outlook, the crypto analyst also cautions about potential sell pressure that might weigh on the Bitcoin price in the coming weeks, potentially pushing it lower before witnessing a rebound beyond $32k.

As the crypto market eagerly awaits the impact of the FOMC statement, all eyes are on Bitcoin’s response to the latest developments from the Federal Reserve. Traders and investors brace themselves for an eventful period of market fluctuations, and Kyledoops’ insights offer valuable guidance during these uncertain times.