What Time Is The Fed Rate Decision? What Will Happen to Bitcoin and Gold?

Markets are acting a little cautiously due to today’s Fed rate decision. What will happen especially in gold, dollar and Bitcoin is eagerly awaited. So, when and what time will the interest rate decision be announced? How will gold and Bitcoin be affected? Here are the details…

When is the Fed rate decision announced?

cryptocoin.com As we have also reported, the markets are currently waiting for the interest rate decision from the US Federal Reserve (FED). Therefore, prices are generally flat. The meeting to be held by the US Federal Reserve will take place over two days, September 20-21. The interest rate decision will be announced on the second day, that is, today. It is expected that the announcement will be after 21:00 Turkish time.

Expectations that the Fed will continue with its “hawk” tone in terms of fighting inflation are shaping the market in general. At the moment, the exit from the bond markets seems to have accelerated. For this reason, the 2-year bond yield in the USA broke the record of 15 years with 3.97 percent. The 10-year bond yield, on the other hand, recorded its highest level since April 2011 with 3.51 percent. The Fed’s expectations also affect the dollar. The US Dollar Index (DXY) climbed to 110.2 yesterday and is pretty close to its highest levels in the last 20 years. Currently, the rate expectation is to increase by 75 basis points.

How does Bitcoin react?

Ahead of the FOMC meeting on Wednesday, September 21, Bitcoin came under serious selling pressure. As of writing, Bitcoin is trading down 1.56 percent at the $19,000 level. Along with Bitcoin, other altcoins also came under selling pressure. $ 19,000 is important because it is an average of 50 months. According to the data, Bitcoin has been maintaining these levels since 2015. Therefore, if Bitcoin fails to defend the support this time, we are likely to see a bigger drop.

The market may take a breather if the Fed announces a 75 basis point rate hike, which will be in line with expectations. However, a 100 basis point rate hike may create serious selling pressure as it will jeopardize liquidity. John Toro, head of trading at the exchange Independent Reserve, said:

If the FOMC gains less than 100 basis points, it makes sense to see a small relief rally. That could be pretty big if the FOMC gains less than 75 basis points. However, this level is highly unlikely.

What are the prospects for gold?

The Fed’s decision may also affect gold. Gold and Money Markets Specialist İslam Memiş said that “gold is at the limit” while interpreting the markets. “There will be a FED breakdown,” he said in precious metal. According to the expert, apart from today’s FED decision, the CBRT’s interest rate decision is also important tomorrow. Noting that gold is currently at the limit, the analyst used the following statements:

We see the levels of $ 1.670 in the ounce price of gold, which fell to the level of $ 1.650. It looks horizontal. The band gap for this week under an ounce is $1,650-1,700. The Fed’s rate decision is in the direction of increase. Here, the amount of interest and explanations will make a directional breakdown in the ounce price of gold.

He thinks that if the FED increases by 50, 75 or 100 basis points, the ounce price of gold will either reach $1,705 or fall to $1,615 in the evening. On the other hand, Memiş stated that October was critical, apart from the FED’s statements. According to the expert, as of October, central banks will withdraw from the market. We can see a record rise in gold as well.

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