Bitcoin Has Been Limping Into FOMC With Flagging Volume Adding To The Burden

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Bitcoin
Bitcoin

The price of Bitcoin hit a daily low at the Wall Street open on 3rd May, as the markets started counting down the hours to the interest rate decision by the Federal Reserve. According to data received from TradingView and Cointelegraph Markets Pro, it was understood that the exchange reached a sum of $28,152 on Bitstamp, which is down by 2.2% from the day’s highs.

The pair continued this volatility into the meeting of the Federal Open Market Committee on the 3rd May, an event that accompanies the adjustments in the interest rate. As reported by Cointelegraph, the market sentiment has priced in a 90% chance of the 0.25% Fed hiking in order to copy the move from March, with very little expectations of a surprise in store. 

Bitcoin Has Been Flagging Around Lately

Just like March, the Feds would be hiking into a flat banking crisis that is hugely exacerbated by increasing rates of interest. Multiple United States regional bank stocks fell considerably the day before, which further raised concerns that the crisis seems to be going nowhere.

The Kobeissi Letter, a financial commentary resource, told their Twitter followers that the regional bank sector, KRE, recently posted the 3rd biggest daily drop of this crisis- where they fell by 7%. Yet, no one had received any comment from the Fed or the FDIC. The situation for Bitcoin, therefore, looks quite perilous.

Nevertheless, the banking angst didn’t diminish any of the aloofness shown by Bitcoin, as it failed to capitalize on the sentiment and remained firmly within the established range of trading. Daan Crypto Trades, a popular trader, went on to summarize that there was absolutely no doubt that BTC had lost some momentum. It was currently ranging and whatever happened would determine the market structure.