Bitcoin 'nuke' warning as Fed rate hike decision looms - Dollar index hits 20-year high
Polls suggest the Fed should hike rates 75 basis points as Bitcoin price clings to $19,000.
Market analysis
Bitcoin (BTC) saw a weak rebound on September 21, and the US dollar hit a new yearly high as investors await today's Federal Open Market Committee interest rate decision .
BTC Price Holds at $19,000 Ahead of Fed DecisionBTC price managed to hold onto $19,000 with a modest daily gain of 1.33%. Meanwhile, the US Dollar Index (DXY), which measures the strength of the greenback against a set of major foreign currencies, hit 110.86, its highest level in twenty years.
Daily price chart BTC/USD vs DXY . Source: TradingViewThe Federal Reserve is poised to discuss how much it could raise its benchmark lending rates to curb record inflation. Interestingly, the market expects the US central bank to hike rates by 75 or 100 basis points (bp).
The ramification of higher interest rates will likely lead to less appetite for riskier assets like stocks and cryptocurrencies. Conversely, the US dollar will serve as a safe haven for investors fleeing risky assets.
"There doesn't appear to be any reason for the Fed to tone down the hawkishness shown at the recent Jackson Hole symposium, and a 'hawkish rise' of [0.75 percentage points] should keep the dollar near its highs of the year," ING analysts said. the Financial Times.
Independent PostyXBT Market Analyst...
Polls suggest the Fed should hike rates 75 basis points as Bitcoin price clings to $19,000.
Market analysis
Bitcoin (BTC) saw a weak rebound on September 21, and the US dollar hit a new yearly high as investors await today's Federal Open Market Committee interest rate decision .
BTC Price Holds at $19,000 Ahead of Fed DecisionBTC price managed to hold onto $19,000 with a modest daily gain of 1.33%. Meanwhile, the US Dollar Index (DXY), which measures the strength of the greenback against a set of major foreign currencies, hit 110.86, its highest level in twenty years.
Daily price chart BTC/USD vs DXY . Source: TradingViewThe Federal Reserve is poised to discuss how much it could raise its benchmark lending rates to curb record inflation. Interestingly, the market expects the US central bank to hike rates by 75 or 100 basis points (bp).
The ramification of higher interest rates will likely lead to less appetite for riskier assets like stocks and cryptocurrencies. Conversely, the US dollar will serve as a safe haven for investors fleeing risky assets.
"There doesn't appear to be any reason for the Fed to tone down the hawkishness shown at the recent Jackson Hole symposium, and a 'hawkish rise' of [0.75 percentage points] should keep the dollar near its highs of the year," ING analysts said. the Financial Times.
Independent PostyXBT Market Analyst...
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