Reserve

Cryptocurrency

United

Bitcoin

<div class="finbold">
 <p class="paragraph">The Federal Reserve will hold its first “<a rel="noopener noreferrer nofollow" title="interest" href="https://thebittimes.com/tag/interest.html">interest</a> rate” meeting of 2024, and the finance market <a rel="noopener noreferrer nofollow" title="expect" href="https://thebittimes.com/tag/expect.html">expect</a>s an increase. Bitcoin’s (BTC) recent <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> action reflects these <a rel="noopener noreferrer nofollow" title="expect" href="https://thebittimes.com/tag/expect.html">expect</a>ations, which historically caused BTC to drop in value.</p>
 <p class="paragraph">Notably, the United States central bank target rate remains unchanged since the last hike in July 2023. In the past six months, Bitcoin, other cryptocurrencies, and the stock market positively reacted to this target interest rate stability.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="471" src="https://cdn.thebittimes.com/images/2024/01/31/cfa584497e3936f0d2622777568dc36c.webp" alt class="wp-image-152379" srcset="https://cdn.thebittimes.com/images/2024/01/31/cfa584497e3936f0d2622777568dc36c.webp 1024w, https://cdn.thebittimes.com/images/2024/01/31/cfa584497e3936f0d2622777568dc36c.webp 300w, https://cdn.thebittimes.com/images/2024/01/31/cfa584497e3936f0d2622777568dc36c.webp 768w, https://cdn.thebittimes.com/images/2024/01/31/cfa584497e3936f0d2622777568dc36c.webp 1536w, https://cdn.thebittimes.com/images/2024/01/31/cfa584497e3936f0d2622777568dc36c.webp 1958w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Federal funds historical chart. Source: <em>New York FED</em>
  </figcaption>
 </figure>
 <p class="paragraph">However, this scenario could change on January 31 if the Federal Reserve follows the market’s expectations. In particular, 97.9% of interest-rate traders believe the target will increase by 25 basis points (bps), according to <em>CME Group</em>.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="579" src="https://cdn.thebittimes.com/images/2024/01/31/35e1600aa46578afcedcd4c3f9bf728d.webp" alt class="wp-image-152380" srcset="https://cdn.thebittimes.com/images/2024/01/31/35e1600aa46578afcedcd4c3f9bf728d.webp 1024w, https://cdn.thebittimes.com/images/2024/01/31/35e1600aa46578afcedcd4c3f9bf728d.webp 300w, https://cdn.thebittimes.com/images/2024/01/31/35e1600aa46578afcedcd4c3f9bf728d.webp 768w, https://cdn.thebittimes.com/images/2024/01/31/35e1600aa46578afcedcd4c3f9bf728d.webp 1280w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Target rate probabilities for 31 JAN 2024 FED meeting. Source: <em>CME Group</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="h-bitcoin-price-analysis-amid-target-interest-rate-increase">Bitcoin price analysis amid target interest rate increase</h2>
 <p class="paragraph">Interestingly, Bitcoin has steadily traded in a consolidation range since December 2023 despite two brief deviations.</p>
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 <p class="paragraph">The first deviation occurred to the upside on the first trading day of the approved Bitcoin spot ETFs. Meanwhile, the second deviation happened two weeks after the first, following a “sell the news event” downtrend. These two in the $41,647.20 support level and $44,371.00 resistance level.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="661" src="https://cdn.thebittimes.com/images/2024/01/31/85bc334962518bd693339912c74736ae.webp" alt class="wp-image-152381" srcset="https://cdn.thebittimes.com/images/2024/01/31/85bc334962518bd693339912c74736ae.webp 1024w, https://cdn.thebittimes.com/images/2024/01/31/85bc334962518bd693339912c74736ae.webp 300w, https://cdn.thebittimes.com/images/2024/01/31/85bc334962518bd693339912c74736ae.webp 768w, https://cdn.thebittimes.com/images/2024/01/31/85bc334962518bd693339912c74736ae.webp 1536w, https://cdn.thebittimes.com/images/2024/01/31/85bc334962518bd693339912c74736ae.webp 1875w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BTC/USD daily chart. Source: <em>TradingView</em>
  </figcaption>
 </figure>
 <p class="paragraph">On December 29, only 82% of the market <a rel="noopener noreferrer nofollow" title="expected" href="https://thebittimes.com/tag/expected.html">expected</a> an increase by the Federal Reserve. Therefore, traders may have been trying to <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> this month’s <a rel="noopener noreferrer nofollow" title="interest" href="https://thebittimes.com/tag/interest.html">interest</a> rate decision, explaining the poor recent action.&nbsp;</p>
 <p class="paragraph">Although this highly expected decision could have already been priced, we expect a volatile day for the cryptocurrency market. Thus, cryptocurrency traders and investors must act cautiously in the hour before and after the decision. The market may see meaningful liquidations for long and short positions as participants digest the Federal Reserve decision and communication.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
 <p class="paragraph"></p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoin-price-prediction-amid-interest-rate-expected-hike-on-january-31-tbt78383.html">https://thebittimes.com/bitcoin-price-prediction-amid-interest-rate-expected-hike-on-january-31-tbt78383.html</a></p>

Bitcoin price prediction amid interest rate expected hike on January 31

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