Bitcoin and Ethereum Price Prediction | FOMC Meeting Minutes Under the Spotlight Today
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The cryptocurrency market is seeing a significant downturn during the Asian session, with Bitcoin breaking through a key barrier level of $16,750. Similar to Bitcoin, Ethereum, the second-ranking cryptocurrency, has experienced a sharp increase of 3% to $1,250.
Despite the global crypto market's worth rising by 0.54% to $809.35 billion the day before to start the new year, the major cryptocurrencies were trading in the bullish early on January 4. The total volume of the cryptocurrency market over the previous day rose by 12.75% to $26.64 billion.
DeFi's 24-hour volume totals $1.92 billion, or 7.20% of the total 24-hour volume of the crypto market. Currently, the combined volume of all stable currencies is $24.85 billion, or 93.30% of the total 24-hour volume of the cryptocurrency market.
FOMC Meeting Minutes Under the Spotlight Today
Further justification for the Federal Reserve's belief that high inflation will continue as the US economy enters 2023 is forecast. Following their meeting on December 13–14, Fed officials updated their inflation projections for the end of 2023 and announced them. As a result, the calculations generally supported the hypothesis that interest rates would need to rise by more than 5% in 2023.
The median estimate from the official projection for the fourth quarter of 2023 was 3.1%, up from the 2.8% expected in the previous quarterly forecast, which was issued in September. The Federal Reserve will disclose the meeting minutes on Wednesday.
In contrast to the Fed's most recent estimate, Wall Street has been more upbeat in recent months as price pressures have started to ease. Jerome Powell, the chair of the FOMC, linked the central bank's inflation pessimism, in particular to rising service cost inflation, at the news conference that followed the FOMC meeting.
The price of one bitcoin is at $16,867, and $15 billion worth of transactions had taken place in the previous day. Technically, Bitcoin has broken through a significant resistance level of $16,785 and is currently moving north toward the following resistance level of $16,950.
A bullish engulfing candle has developed on the 4-hour timeframe for Bitcoin, suggesting the potential for a robust uptrend continuation. BTC might reach the $17,250 barrier if the price breaks through $16,950.
Ethereum's price at the moment is $1,249, and its 24-hour trading volume is $4.8 billion. With a 2.5% increase, Ethereum is advancing and finding immediate support at the $1,235 mark.
A bullish breakout might push the price up into the $1,280 or $1,300 level. On the upside, ETH's immediate barrier is still at the $1,260 level.
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