Market situation: countdown to the US Federal Reserve



At 9:30 pm Tehran tonight, the meeting of the US Federal Reserve to decide on the rate of increase in bank interest rates will end and the results will be announced at a press conference a few hours later. Experts say the outcome of this meeting is important for the digital currency market in the short term, but over time the impact of new US monetary policy on the market will diminish.

According to the Quinn Desk, the price of bitcoin and other digital currencies rose slightly yesterday, while tonight the US Federal Reserve will announce its plan to increase bank interest rates.

Experts expect the US Federal Reserve to raise interest rates by 0.25% at each stage. This increase could exacerbate recent monetary conditions in the United States, which have raised the price of risky assets in recent years. It is also possible that the US Federal Reserve may decide to further reduce its balance of $ 9 trillion.

As the fourth round of talks between Ukrainian and Russian officials took place on Monday, no ceasefire agreement has yet been reached.

As of yesterday, bitcoins are less profitable than altcoins. This means that during these few days the willingness of investors to take risks has increased to some extent. The price of bitcoin has risen by 2% in the last 24 hours, while Atrium and The Graph have risen by 5% and 20% respectively.

Investor distrust of the market remains palpable and Fundstrat Global Advisors says:

The value of capital (the cost of maintaining long positions in the futures market) for constant bitcoin futures is uncertain and cannot maintain its position in the negative or positive zone for a long time. This shows that traders in this period of time are reluctant to forecast the market and commit capital.

The pressure of sales is gradually decreasing

Some analysts expect further pressure on sales of high-risk asset markets, such as digital currencies and stocks, to ease.

MRB Partners recently wrote in a report:

The main indicators of the capital market show that the growth rate of world markets has slowed down to some extent. As tensions between Russia and Ukraine ease, 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 is strongly related to the performance of these markets.

Market participants expect the US bank’s interest rate to rise by 0.25% in 7 stages and at the discretion of the Central Bank at 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 declining sharply, but it is also possible that with rising prices, large volumes of existing short selling positions will be eliminated.

The chart below shows the decline “from top to bottom” of bitcoin prices and global stock markets. As you can see, the recent decline in the bitcoin market, the European stock market and the Nasdaq was severe, but not as great as the previous one. Of course, in the Chinese stock market of Chinese companies, the recent decline was more severe than the previous one.

Market situation: countdown to the US Federal Reserve
Comparing the recent decline in the price of bitcoin with the fall of global stock markets.

The publication Market Status: Countdown to the advent of the US Federal Reserve appeared for the first time in digital currency.

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