Bitcoin failed to move past its 50-day simple moving average as market participants awaited the outcome of the FOMC meeting and key tech earnings.
Bitcoin (BTC) gave back early gains around Wednesday’s Wall Street open as markets prepared for the US Federal Reserve’s interest-rate decision.
Data from TradingView showed BTC/USD failing to break beyond $81,700, instead reversing to as low as $80,297 on Bitstamp. At the time of writing, the pair was down 0.3% on the day.
US stocks opened flat ahead of the Federal Open Market Committee (FOMC) meeting statement and press conference from Fed chair Kevin Warsh. Markets overwhelmingly expected officials to hold rates in their current 3.75-4% range, with the focus instead on Warsh’s language and comments on the economy.
Data from CME Group’s FedWatch Tool showed 90.6% odds of a pause at Wednesday’s FOMC, while the outcome for the December meeting remained a 0.25% rate hike.
Commenting, Keith Alan, cofounder of crypto trading platform Material Indicators, saw Warsh’s words potentially shifting the December odds. Between the two meetings, traders would be digesting the result of the US midterm elections on Nov. 3.
“Markets may have priced in no rate change, but they haven’t priced in the election outcome,” he summarized on Tuesday.
The tech-heavy Nasdaq Composite Index did not follow South Korea’s KOSPI Composite Index higher after the KOSPI closed up 6.6%, its best daily gain since July.
In his latest commentary, data analyst Charl van Zyl suggested that the Fed move and the week’s key tech earnings data would materially influence market views of the health of the AI sector.
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