Bitcoin has been under intense selling pressure in the days leading up to the FOMC meeting on September 21. At the time of writing, Bitcoin holds price has fallen by 1.56% to the $19,000 mark. Several alternative cryptocurrencies have been hit by the same selling pressure as Bitcoin holds.
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It’s worth noting that $19,000 is the median of Bitcoin’s major support levels over the past 50 months. Based on Bloomberg’s data, Bitcoin has been holding steady at these levels since 2015. BTC investors may experience further hardship and a market fall if Bitcoin fails to defend the support this time.
Financial Policy Discussion at the Federal Reserve
Due to rising inflation, the Federal Reserve is expected to announce an increase in interest rates on Wednesday. Bitcoin’s future price movement will be heavily influenced by the Fed’s policy choice.
If the Fed announces a rate hike along expected lines, say 75 basis points, the market may take a respite. However, a rate hike of 100 basis points might cause significant selling pressure because of the threat to liquidity.
According to Bloomberg, Independent Reserve’s head of trading, John Toro, has said:
A moderate relief rally would be expected if the FOMC provides a rate hike of less than 100 basis points, and a significant one if the FOMC delivers a rate hike of less than 75 basis points (which seems quite doubtful).
As of this writing, the MVIS CryptoCompare Digital Assets 100 Index is down for the second consecutive week. There has been a 60% decline in the index so far this year, compared to a 21% decline in U.S. stocks.
More Bitcoins Bought by MicroStrategy
MicroStrategy revealed on Tuesday, September 20 that it had acquired 301 more Bitcoins. MicroStrategy, as reported by its CEO Michael Saylor, has recently acquired an additional 301 bitcoins at an average price of $ 19,851. As of today, September 19th, @MicroStrategy owns 130,000 bitcoins, which were purchased for $3.98 billion, or an average price of $30,639.
To expand its Bitcoin holdings, MicroStrategy (NASDAQ: MSTR) is contemplating selling $500 million worth of stock.
Source: Google Trend
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