Bitcoin Price Volatility Spikes Ahead of U.S FOMC Data
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On Wednesday, a few hours before the Fed released the FOMC meeting minutes, Bitcoin price traded precariously at a support level of around $26.6k, which was achieved late last week. Already, crypto traders were highly convinced of choppy crypto markets backed by both technical and fundamental aspects. Moreover, the United States Federal Reserve was expected to release a detailed record of the FOMC’s most recent meeting, which provides comprehensive insights into the economic and financial conditions that influenced their vote on where to set interest rates.
FOMC and Bitcoin Market
From the crypto traders’ standpoint on the United States market, a more hawkish than expected FOMC meeting minutes is definitely good for the U.S. dollar but bearish for Bitcoin. Already, the U.S Dollar Currency Index (DYY) was up slightly during the early New York trading session. According to market data provided by TradingView, the DXY was up about 0.08 percent to trade around 103.594. Bitcoin price, on the other end, had dropped about 3 percent to trade around $26.4k.
Crypto Price Action in Relation to the U.S Economic Data
The mother coin was largely supported by the weekly 200 Moving Average (MA), despite the bleeding on the short time frames. Crypto traders understand the need for Bitcoin price to close Wednesday above $26k to assure a bullish outlook on the relief rally. Moreover, Bitcoin’s dominance has presented a lot of uncertainty in the past few weeks.