Bitcoin Rises To $27,000 Ahead Of Fed Rate Decision
The market is keeping a close eye on cryptocurrency price movements this week as the Federal Reserve publishes its interest rate decision.
Although Bitcoin barely reacted to inflation data last week, remaining at $26,000, the asset started the week higher, reaching $27,000 ahead of the Fed's decision. At the time of writing, the major cryptocurrency was trading at $27,160, adding 2.35%. Bitcoin is correlated with the dollar index. The DXY remains above the 105 mark, indicating a potential inverse relationship between Bitcoin and the DXY.
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However, the positive trend may be reversed on September 20, as many analysts are confident that the Fed's decision will put pressure on risky assets. Although inflation has started to decline, any tightening in the Fed's statements could lead to a decline in investor sentiment.
Previously, Fed policymakers have said that another interest rate hike is expected before the end of 2023. Since then, their opinion has not changed. CME Fedwatch Tool data shows that the probability of a rate hike is 1 in 3. The Fed is also expected to keep short-term rates unchanged from the current level of 5.25%-5.5%.
