Bitcoin reached its highest level since almost a week on Tuesday afternoon at over $83,000. The recent fluctuations are likely to be understood, not least, as a classic fact-check and thus a certain calm before a possible storm. Perhaps bargain hunters saw the recent decline in price as an opportunity to enter the market.
The latest rise in the price of oil is also likely to be due to vague hopes of a solution to the conflict between the USA and Iran. It was said that there was a possible compromise proposal from mediators from Qatar and Pakistan.
Bitcoin price chart on a monthly basis
The Fed’s interest rate meeting is likely to cast a shadow – market participants largely expect a pause in interest rates
Investors are likely to focus on the US Federal Reserve (Fed) interest rate meeting scheduled for next week. While the Fed’s interest rate decision is scheduled for 19:00, the subsequent FOMC press conference with Kevin Warsh will take center stage starting at 19:30.
The monetary policy developments are of importance in that the prospect of further rising capital market interest rates increases the opportunity costs of holding interest-free assets such as Bitcoin, and vice versa.
The CME Group’s „Fed Watch Tool“ currently signals that 85.1 percent of market participants expect a pause in interest rates at the meeting on October 28, and 14.9 percent expect an interest rate hike totaling a quarter of a percentage point.
