Although the leading cryptocurrency Bitcoin (BTC) started this week with an upward trend, it showed a downward trend again before the Fed interest rate decision.
At this point, market sentiment remains cautious, and it is being watched whether Bitcoin will rise after the FED decision.
FOMC Data Points to a Drop in Bitcoin!
Crypto analyst Ali Martinez conducted an analysis on this topic and found that Bitcoin has fallen six times following the seven FOMC meetings held this year.
“Of the seven FOMC meetings this year, we've only seen Bitcoin move higher in one,” the analyst said.
According to data shared by the analyst, Bitcoin has only seen an increase in one of the FOMC meetings this year, with a 15% increase following the FOMC meeting on May 7.
The largest declines occurred in January (-29%), October (-19%) and March (-12%), respectively.
Based on this data, the analyst warned that caution should be exercised against the possibility of a correction if there is no bullish catalyst after tomorrow's FOMC meeting.
Bitcoin's Rise Still Not Clear!
Analyst firm Matrixport has taken a cautious approach as the FOMC meeting approaches.
Matrixport said Bitcoin is showing strength in the short term, but uncertainty ahead of the FOMC meeting has not yet been resolved.
At this point, he said, “The December 10th FOMC meeting is very close and the general market uncertainty has not yet been resolved. Bitcoin's price has shown temporary stability, but it is still very difficult to say that this is a new bullish phase.”
The analyst firm also noted that the year-end is typically a period of deleveraging and position reduction, and that a short-term recovery should be interpreted as an opportunity to reduce positions rather than a buy signal.
Finally, analysts stated that uncertainty continues in Bitcoin and set the current short-term critical level for a bullish/bearish situation at $91,500.
*This is not investment advice.
