Bitcoin approached important near-term support on new Fed chair Kevin Warsh's first FOMC day with a $55,000 BTC price target still on the table.
Bitcoin (BTC) fell below $65,000 on Wednesday as traders predicted the impact of a key macro event.
Data from TradingView showed intraday lows of $64,782 on Bitstamp.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
The US Federal Reserve was due to decide on changes to interest rates at 2pm Eastern time — a move that formed the week’s main volatility catalyst.
The meeting of the Federal Open Market Committee (FOMC) would be the first under new Fed chair, Kevin Warsh, making his remarks at the subsequent press conference just as important as the overall outcome.
As Cointelegraph reported, Warsh had been under pressure to cut rates despite the inflationary impact of the US-Iran war.
“FOMC could set the tone for the rest of the month,” trader Killa wrote in an X post on the topic.
Killa noted that BTC price action tended to weaken around Fed decisions.
“Right now, BTC is forming a bullish narrative into the event, but as I always say, the outcome is usually priced in before the news is released,” they continued.
BTC/USD chart with FOMC meetings marked. Source: Killa/X
On Tuesday, Bitcoin already experienced a loss of momentum, even as stocks headed higher on Iran relief. Analysis had already warned that price would likely stall above $67,000 as demand remained subdued.
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