Post-Fed decision crypto market overview. Following the announced inflation data, Bitcoin dropped by more than 3.50% to $40,500, then experienced a partial recovery and rose above $41,000. Ethereum, on the other hand, dropped by approximately 4% to around 2,150. Likewise, it experienced a partial price increase and rose to $ 2,180.
Therefore, investors closely follow the Fed’s interest rate decision and the impact of this decision on the markets. If the Fed keeps interest rates constant, we may see relief and positive movement in the cryptocurrency markets. However, an unexpected interest rate increase may lead to a sudden selling pressure in the markets.
The Fed’s interest rate decision tonight could be a turning point for cryptocurrency markets. The impact of the decision on Bitcoin, Ethereum and other altcoins will determine the overall direction of the market. Investors will carefully monitor this decision and subsequent market reactions.
What Does Market Data Mean?
Looking at the Bitcoin liquidation map, it is seen that a high amount of liquidation has accumulated first at the level of $ 40,540. On the upside, there is also a lot of liquidation between the $42,288 and $42,813 region. Afterwards, there was an accumulation around $43,800.
Generally, it is seen that there is movement towards areas where liquid accumulates excessively. After large amounts of liquidations, reverse movements are recorded in the price.
Additionally, it would not be wrong to say that the recent rise is due to futures transactions. The chart below shows the BTC futures open interest rate. This data shows the dollar value of total open positions, which is a reflection of positions that have not yet been closed and are actively traded in the market.
The dollar value of open positions in BTC has increased to the same level as the bull season in 2021. This shows that the increase in price is due to futures transactions, there is not much spot purchasing and there may be a decrease in price when these positions are closed.
In summary, it seems that the recent rise is artificial and the market is tending to fall again. However, if spot purchases increase in the coming period and there is news that will catalyze the market, the upward trend may continue. Looking at these data, it can be clearly said that there is a high probability of sudden and sharp movements up or down in the market.
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