Bitcoin price reacted little to the Fed’s confirmation of additional rates increases during 2016. Half the market is passively accumulating via limit orders placed just below price, the other half is actively selling at market.
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Time of analysis: 15h00 UTC BTCC 4-Hour Chart
From the analysis pages of xbt.social, earlier today:
In their announcement yesterday, the Federal Open Market Committee retained the target range for the federal funds rate at between 0.25% and 0.5%. The average of policy makers’ new “dot-plots” projects a rate of 0.875% by the end of 2016. The implication is that the Fed will enact two 0.25% rates increases during 2016.
The US dollar weakened across the board, on the news, but gold shot up almost $30 on the announcement. The reason, ostensibly, is that the Fed cited a “weak global economy” as the reason for their decision (think safe haven) and have forecast two more hikes (and not canceled until further notice, as the market assumed) – again, think safe haven. Hence gold reached for its prior 2016 highs.
Bitcoin hardly showed any price reaction. Perhaps the bitcoin market expected something more austere – such as a Cyprus-style or Greek currency crisis. Perhaps bitcoin market participants are still mulling their investment options and risk in light of the Fed’s dramatic-by-implication message between the lines.
The 4-hour chart remains below the 200MA (red) in the BTCC chart, and others, but the OKCoin and Bitstamp charts are above their 200MA. Not sure why this is – perhaps a consortium is trying to pump price in those exchanges. Unfortunately, they’ve chosen an upward corrective wave and any price […]
