Bitcoin Dips Below $113K as S&P 500 Achieves Record Peak Ahead of Fed Rate Meeting
Bitcoin pulls back from its local highs as the S&P 500 reaches unprecedented levels amid anticipation of the Federal Reserve's interest rate decision.
Bitcoin fell beneath $113,000 during Wednesday’s Wall Street open, diverging from rising US stocks as the S&P 500 reached a new all-time peak. The drop was noted after Bitcoin’s recent attempt to recover above $116,000, a critical level for traders.
Key Points:
- Bitcoin struggles to regain its position following a recent sell-off.
- Analysts set Bitcoin target prices around $111,000 and $114,500 for potential weekly closures.
- Anticipation of a Fed interest rate cut has buoyed the S&P 500 to new heights.
Bitcoin remained under pressure, tracing down from the highs of earlier trading. Data indicated that the cryptocurrency sustained losses after a sharp sell-off that transpired in the previous US market session.
Bitcoin’s Volatile Re-Test Ahead of FOMC Meeting
Recent information from Cointelegraph Markets Pro and TradingView illustrated that BTC price maintained itself around the $113,000 mark. As the market prepared for the FOMC’s upcoming interest rate decision, Bitcoin’s movement over the past periods led to the awaited re-test of volatility.
Reiteration from trader and analyst Rekt Capital suggested that a successful re-test would necessitate a weekly closure above $114,500. Emphasizing Bitcoin’s 21-week exponential moving average near $111,000 provides context to current trading conditions.
BTC/USD one-week chart. Source: Rekt Capital/X
Daan Crypto Trades analyzed trailing indicators, noting significant price points around $113,100 and the broader range boundaries at $116,000 and $107,000. The current sentiment and trading landscape see Bitcoin grappling within these key thresholds.
BTC/USDT perpetual contract four-hour chart. Source: Daan Crypto Trades/X
Rate Cut Anticipation Labeled as ‘Non-Event’
In the crypto landscape, a sideways movement was noted, contrasting sharply with the S&P 500, which opened to a new peak of 6,914. As traders awaited the Fed’s decision, the general consensus showed expectations of a 0.25% rate cut, which has historically provided a supportive backdrop to assets like cryptocurrencies and stocks.
Market resource QCP Capital suggested that the upcoming announcement might have minimal effect on the markets unless significant new information is presented.
“The absence of official data since the U.S. government shutdown leaves the Fed effectively flying blind. Without inflation data or labor statistics, any policy recalibration would be premature”.
This text does not provide financial advice. Investors should always conduct their own research before making monetary decisions.
