10h05 â–ª
5
min read â–ª by
Bitcoin trades around 80,000 dollars, as markets digest the decision of the American Federal Reserve (Fed) on interest rates. On Wednesday, the cryptocurrency reached 81,687 dollars before falling back below 80,500 dollars. These rapid movements marked a turbulent session, dominated by monetary expectations. After keeping its rates unchanged, the Fed saw the price rise towards 81,000 dollars in the following minutes.
In brief
- Bitcoin trades around 80,000 dollars after a session marked by strong fluctuations.
- The Fed keeps its interest rates unchanged, in line with market expectations.
- BTC price reaches 81,687 dollars before falling below 80,500 dollars.
- Liquidations exceed 167 million dollars in the crypto market, including nearly 58 million for bitcoin.
Bitcoin is around $80,000 after strong fluctuations
The bitcoin price crossed 81,000 dollars on Wednesday, in a climate marked by anticipation of the American monetary decision. However, this rise did not last, as the price then fell back below 80,500 dollars. This level corresponded approximately to that observed twenty-four hours earlier. Investors thus witnessed several rapid movements, without a lasting breakout of the range between 80,000 and 82,000 dollars.
Before the official announcement, markets widely anticipated keeping key rates unchanged. According to the FedWatch tool from CME Group, the probability of a status quo reached about 90%. Economists and analysts therefore expected the Federal Open Market Committee (FOMC) to maintain its monetary policy. Despite pressures related to persistent inflation, forecasts favored a pause before the next American midterm elections.
Price movements began as early as Tuesday afternoon, when the cryptocurrency was rejected around 80,500 dollars. It then rose towards 80,700 dollars before a sudden surge pushed it to 81,136 dollars. Around 5:35 p.m. Eastern Time, the price fell again before gradually recovering. This rebound almost erased losses recorded before midnight.
On Wednesday, bitcoin continued its rebound during the early hours of the session. Its price reached an intraday high of 81,687 dollars, then briefly stabilized around 81,500 dollars. However, selling pressure quickly resumed and brought the price below 80,400 dollars. This new drop dashed hopes of a quick breakout from the 80,000 to 82,000 dollar range.
Bitcoin at $80,000: the Fed keeps rates unchanged
At 2 p.m. Eastern Time, the Federal Reserve announced the maintenance of its key interest rates. This decision matched the majority expectations of financial markets. In the following minutes, bitcoin rose back around 81,000 dollars, marking a gain of about 0.5% over twenty-four hours. The immediate reaction accompanied the announcement, without confirming a lasting recovery.
In its statement, the FOMC described an American economy progressing at a steady pace. The committee also highlighted the resilience of domestic consumption, the strength of capital investments, and strong productivity growth. According to its observations, job creation followed the evolution of the active population. The unemployment rate, meanwhile, changed little during the examined period.
However, the Fed reminded that inflation remained high and that uncertainty remained significant, notably due to geopolitical developments. The committee reaffirmed its commitment to price stability. These elements constitute an important context for financial assets, whose prices can react quickly to monetary announcements. Thus, the rate maintenance did not prevent fluctuations in the cryptocurrency market.
Variations recorded during the last twenty-four hours also triggered liquidations in derivatives markets. According to Glassnode, these rapid movements pressured actors using high leverage. When prices change sharply, some positions no longer have sufficient collateral, and platforms may close them automatically. This mechanism sometimes accentuates movements already underway in the markets.
Bitcoin at $80,000: liquidations exceed 167 million
Coinglass data shows that bitcoin-related liquidations approached 58 million dollars on Wednesday. Short positions represented well over 46 million dollars of this amount. These positions allow traders to bet on a price drop, but they become vulnerable when the market rises quickly. The rebound observed after the Fed announcement therefore contributed to weakening some sellers.
At the scale of the entire cryptocurrency market, liquidations exceeded 167 million dollars. Short positions represented about 110 million dollars of the total. These figures highlight the impact of rapid directional changes in prices. They also show that fluctuations do not concern only the main cryptocurrency but more broadly affect derivatives markets.
In the short term, maintaining Bitcoin around 80,000 dollars will be an important level to watch. Stabilization above this range could favor a lull after recent movements. Conversely, a new decline could prolong uncertainty and increase pressure on leveraged positions. Market evolution will notably depend on upcoming economic data and signals from the Fed regarding inflation.
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Journaliste et rédacteur web passionné par l’univers des cryptomonnaies et des technologies Web3. J’y traite les dernières tendances et actualités afin de proposer un contenu de haute qualité à un large public du secteur.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.