Dec 13, 2023

Bitcoin Price Soars Above $41K on Fed FOMC Day

Crypto enthusiasts rejoice as BTC price clears $41K on Fed FOMC day.
BTC price clears $41K as Bitcoin digests US macro data on Fed FOMC day

As the Federal Reserve was in focus, Bitcoin (BTC) recovered and surpassed $41,000 on the Dec. 13 Wall Street open. India Crypto, Gemini Crypto Today, Forta Crypto, Mask Crypto, ISO 20022 Crypto, HNT Crypto, FET Crypto, LOOM Crypto, and GST Crypto all saw an uptick in activity.

PPI target beat comes hours before Fed rate move

Cointelegraph Markets Pro and TradingView data showed that Bitcoin (BTC) price strength gained traction in response to the latest U.S. macro data releases.

November’s Producer Price Index (PPI) print was lower than expected, further confirming the existing narrative of decreasing inflation. The Consumer Price Index (CPI) print, while less encouraging, did not cause any new losses for risk assets.

“This is the lowest PPI inflation reading since December 2021,” wrote The Kobeissi Letter on X (formerly Twitter) in reaction to the news.

The Kobeissi Letter referred to the most important macro event of the week, the Federal Open Market Committee (FOMC) meeting and the decision on interest rate changes. The decision is expected at 2 pm Eastern Time, followed by a press conference with Fed Chair Jerome Powell at 2:30 pm.

Both events are likely to cause short-term volatility in the crypto and traditional markets, although Bitcoin’s reaction to the macro data has been relatively muted.

According to data from CME Group’s FedWatch Tool, markets are currently expecting no rate changes as a result of the FOMC meeting.

Trader eyes key BTC price levels for “action”

Low-timeframe BTC price action, meanwhile, lacked a clear trend, with popular trader Jelle reiterating the significance of $48,000 overhead. “While the lower timeframes look choppy, Bitcoin seems to be flipping the mid-range level. $48,000 is still the main level to overcome — after which price discovery is within an arms reach,” he told X subscribers on the day.

The day’s analysis contained a prediction of further sideways behavior, with Jelle betting on “most of the downside” already having passed for Bitcoin. Looking at liquidation levels, fellow trader Daan Crypto Trades eyed increasing leveraged bets in a zone where spot price was now in the process of clearing.

“Building some big liquidation clusters as it’s chopping sideways,” he wrote alongside data from statistics resource CoinGlass, while traders also monitored mask crypto, fet crypto, loom crypto, and gemini crypto today.

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