Bitcoin Price Pinned at $48,000 as Traders Await Fed Decision

15 Dec 2021 · 3rd Party Analysis

Bitcoin Price Pinned at $48,000 as Traders Await Fed Decision

WRITTEN BY ThorFX

In Summary:

  • Bitcoin price moving sideways early Wednesday as traders take a cautious approach
  • The US Federal Reserve concludes its final meeting of 2021, volatility is expected

What’s Trading in the Markets?

The price of bitcoin is hugging the flat line early Wednesday as US traders are stepping into the day. Wednesday’s market session will be defined by a key Federal Reserve conference with Chair Jerome Powell.

To this end, it appears cryptocurrency trading has been fairly muted as market participants are taking a cautious approach. Bitcoin, the world’s biggest cryptocurrency, is trading near $48,000 apiece after it logged a 2% gain on Tuesday.

Ether, on the other hand, is so far up for a second straight day with price gravitating towards $3,900 per coin. Nevertheless, the crypto asset space has been rather jittery this week.

Major cryptos struggled to perform on Monday after substantial gains over the weekend. That said, Monday deals brought a decreased risk appetite across digital currencies.

The mood, however, could shift quickly, depending on the outcome of today’s Federal Reserve meeting.

What to Expect in the Markets?

In more detail, the US central bank is having its final press conference today and global financial markets will be watching. With this in mind, crypto assets are likely to be impacted by what the Fed Chair has to say.

Jerome Powell, the Chairman of the Federal Reserve, appears today to address looming uncertainties for the US economy. He is also expected to lay out a pathway for the Fed’s next steps toward dealing with growing challenges.

Among them, a continued rise in inflation has begun weighing on the positive market outlook. Consumer prices in the US hit a 39-year high with November’s inflation print of 6.8% rise on an annualized basis.

In addition, Omicron worries have cast a shadow over Europe and the US. Leading economies in the bloc, such as France and Germany, are reporting roughly 50,000 cases a day on a seven-day average.

In that context, traders and investors are likely to have lots of trading opportunities during the press conference with Chair Powell.

Dive Deeper in the Financial World

Meanwhile, stock futures today are pointing to some modest gains. More precisely, Dow futures, S&P500 futures and Nasdaq futures were up about 0.1% to 0.3%. Nevertheless, Wall Street logged a second straight losing session Tuesday. Extending the drop from Monday, all three major indexes finished the day in the red.

The Nasdaq Composite was the biggest decliner, down 1.1% on Tuesday. Additionally, the Dow Jones and the S&P500 dropped 0.3%, and 0.8%, respectively.

European markets, on the other hand, opened today’s regular session to the upside. This said, the Europe-wide Stoxx 600 gained about half a percent in the first hour of trading.

Economic News Today (EST time)

The Federal Reserve press conference led by Jerome Powell begins at 2:30 pm. Before that, the US central bank will release its interest rate decision at 2:00 pm. Also, Canada reveals its inflation rate at 08:30 am.

Later, New Zealand publishes its GDP growth for the third quarter at 4:45 pm. Finally, Australia’s employment change for November arrives at 7:30 pm.

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