Led by Bitcoin (BTC), the cryptocurrency market experienced a retreat ahead of the last interest rate decision of the year in the USA.
The cryptocurrency market has been blocked by the USA in its upward progress. The bustling economic week in the USA has reached its final plateau. US inflation data was announced the other day. Even though inflation was the same as last month, all eyes turned to the interest rate decision.
The last interest rate decision of the year in the USA will be announced on the evening of December 13. Markets are acting with the expectation that there will be no interest rate reduction as a result of this decision.
Hours before the interest rate decision, retreats were seen in the BTC-based cryptocurrency market. While BTC fell below $41,000, major coins such as AVAX and SOL lost more than 10 percent of their value.
Critical day: Fed interest rate decision, FOMC minutes and BTC price
It is a critical day for Bitcoin and the cryptocurrency market. The fact that inflation data in the USA came in at an annual rate of 3.1 percent made it difficult for the Fed to reduce its interest rate decision. The Fed may choose to keep interest rates constant instead of reducing them on the evening of December 13. For this reason, BTC and cryptocurrency markets started to wait for the outcome of the Fed evening.
FOMC minutes will be announced after the Fed’s interest rate decision. In the last phase of the year in the USA, expectations and studies for 2024 will be discussed. As BTC moves forward to 2024, attention is paid to the economic moves of the USA.
BTC bull corrected by falling within the Fed range during the day. BTC dropped to $40,550 during the day and experienced a rapid recovery. Trying to maintain permanence above 41 thousand dollars, BTC also triggered profit sales in altcoins.
AVAX, which experienced a great bull run, fell to $ 35 with a 15 percent withdrawal during the day. Another bull star, SOL, fell more than 8 percent to $65. The price of ADA dropped by 5 percent to $0.55. The pullback in the majors was also followed by the top 200 cryptocurrencies by market cap. In the general altcoin market, downward price movement was observed.
It is said that BTC may rise again as the Fed evening concludes and details for 2024 are shared. On the other hand, the profitability rate and the already inflated price structure of altcoins create anxiety that the sales pressure may continue.
While the general outlook in the cryptocurrency market is expectant, there are important resistance points for BTC to move towards 45 thousand dollars again. These resistance points stand out as $41 thousand 750, $42 thousand, $42 thousand 850 and $43 thousand 250. Exceeding these zones may lead to a retest of $45,000. On the other hand, BTC defends the important support point at $40,750. If this support point is lost, BTC price may drop to $39,500.
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