Economists, Fed officials, Wall Street experts share their views on whether the Fed will raise interest rates by 25 basis points on February 1. Ahead of the meeting, Bitcoin (BTC) broke the new year’s record with a long liquidation of $ 46 million. Bitcoin (BTC) price and detailed market data from here you can see.
Experts’ expectations regarding the Fed rate decision
The Fed will announce another major rate hike decision at its FOMC meeting on February 1 that will guide the market direction and the economy, at least in the first quarter. The market, which increased interest rates by 425 basis points last year with 75 basis points and 50 basis points increases four times in a row in December, expects the interest rate hike to be announced on Wednesday, with a further slowdown by 25 basis points.
Former Fed Vice Chairman Roger Ferguson expects 25 bases from this month’s FOMC meeting. He believes Fed Chairman Jerome Powell will consider cooling inflation, but is still far from the 2% target set for two moves this year.
Experts are confident the Fed will raise interest rates by 25 basis points.
Fed officials predicted they’ll stop when interest rates rise above 5% in December, but Wall Street experts expect slightly below that level. Fed Board member Christopher J. Waller argues that the Fed needs semiannual data, not quarterly positive data, to assess a change. Thus, the Fed will actually stop the rate hikes before its meeting on May 2-3.
Brett Ryan, a senior US economist at Deutsche Bank, is among the experts expecting a 25 basis point increase. Mohamed A. El-Erian, an Egyptian-American economist and President of Queens’ College in Cambridge, said he would be “shocked” if the Fed did anything other than raise interest rates by 25 basis points this week. However, due to risk management on the policy side, a 50 basis point rate hike should also be considered.
Bitcoin sees biggest long liquidation of 2023 ahead of meeting
The extreme volatility of BTC price sees $46 million of long Bitcoin positions evaporate in a single day before the monthly close. With just a few hours until the monthly close, the stakes remain high for long and short traders. This will be followed by the Fed’s interest rate decisions on February 1 and the European Central Bank a day later.
Ahead of the critical dates, liquidations increased significantly despite Bitcoin maintaining a fairly narrow range. The trip to $22,500 led to long liquidations of $46 million on Jan. 30, the highest daily total for 2023 so far, according to data from Coinglass.
Meanwhile, other data from on-chain analytics resource Material Indicators highlights the tense situation in the Binance order book. The buying and selling liquidity has remained in flux with gradual ups and downs that have had a tangible impact on the BTC price trajectory. Orders just under $22,000 and demands at $24,000 kept BTC/USD in check.
“It is worth noting that this is the same quote block that has been pushing the BTC price for weeks and could get bumpy as it tends to move,” Material Indicators tweeted on Jan.
Bitcoin could test 2017 highs as final support
Continuing the analysis, it is stated that the position of liquidity is “no coincidence” and Bitcoin’s ATH level in 2017 has been chosen as the “last mainstay” support zone.
The latest situation of Bitcoin, the Fed meeting and its effects on the market
The crypto market witnessed a spectacular rebound in January amid expectations that a Fed would change its rate policy amid cooling inflation and positive employment data. Bitcoin price rallied 40% per month, reaching $23.8k.
If the Fed raises interest rates by 25 basis points and Powell points to a dovish approach and economic recovery, Bitcoin price is likely to exceed $25,000, according to experts. However, a rate hike of 50 basis points could cause crypto prices to plummet. cryptocoin.com We have stated that the crypto money market reacted positively to the US economic data of last week.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your own research and due diligence before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.