With under $84,000, Bitcoin closed on Wednesday at its lowest level in almost a week. The $87,000 mark is clearly proving to be too persistent. Investors remain on edge due to geopolitical and monetary uncertainties. The excitement over recent regulatory developments in the US has now given way to a more sober perspective. At the same time, the unwinding of so-called „long positions“ could create additional pressure to reduce exposure.
Bitcoin price chart on a monthly basis
Joy over regulatory developments gives way to a sober perspective
In mid-September, the U.S. Securities and Exchange Commission (SEC) announced a five-year exemption for trading in tokenized shares for certain U.S. companies, thus providing regulatory support. A few days earlier, the U.S. Senate had still put the so-called „Clarity Act“ on hold, which was generally seen as a setback for the industry.
Monetary policy impulses through Fed minutes conceivable – „Fed Watch Tool“ forecasts increased chance of interest rate pause at October meeting
Tonight, in particular, attention is focused on the minutes of the Fed’s most recent meeting at 20:00. Investors are hoping to receive important information regarding the previous meeting of the Federal Reserve on September 16. At the beginning of the month, the U.S. central bank raised the key interest rate by 25 basis points to a range of 3.75 to 4.00 percent.
According to the CME Group’s „Fed Watch Tool,“ currently 78.4 percent of market participants expect a pause in interest rates and 21.6 percent expect another interest rate hike, totaling a quarter of a percentage point. The current range itself is currently at 3.75 to 4.00 percent.
The preliminary consumer confidence from the University of Michigan will be in focus on Friday (16:00).
