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[코인뉴스] Will Bitcoin plummet right after the FOMC regular meeting? heightened anxiety

Possibility of a January rate hike… fear of shrinking

Cryptocurrency prices such as bitcoin are displayed on the electronic display of the Bithumb Customer Support Center in Seocho-gu, Seoul. ⓒNewsis

With Bitcoin showing an unsettling appearance with daily declines, attention is focused on the Federal Open Market Committee (FOMC), which is just two days away. This is because, if additional tightening measures are announced at the FOMC, market sentiment will further freeze and the possibility of further declines will increase.

According to the cryptocurrency exchange Upbit on the 25th, as of 2:50 p.m. on the same day, 1 bitcoin was 43.9 million won, down 1.8% from the previous day. It is also being traded at a similar price of 43,858,000 won on Bithumb.

Unlike stocks, cryptocurrencies are priced on a per exchange basis, so even the same type of cryptocurrency has a slightly different price depending on the exchange.

Bitcoin continues to decline and is precariously maintaining the 40 million won level. As the US Federal Reserve (Fed) announced its intention to reduce asset purchases (tapering) and raise interest rates, major stock markets such as Nasdaq fell sharply, and Bitcoin also fell. Recently, the Nasdaq and Bitcoin prices have been showing a similar trend as the synchronization has deepened.

For this reason, the FOMC’s January regular meeting is bound to draw attention. The FOMC will announce the results of the January regular meeting on the 27th at 3 am (Korean time), and Fed Chairman Jerome Powell will start a press conference 30 minutes later.

This is because there are predictions that the Fed may suddenly raise interest rates at the FOMC. In particular, there are speculations that the Fed will increase the rate of interest rate hike by 0.5 percentage points at the FOMC meeting in March.

On the other hand, Ethereum, the altcoin leader, is also showing a similar flow to Bitcoin. Ethereum is being traded at 290,000 won on Upbit at the same time. This is a decrease of 2.4% compared to the previous day. On Bithumb, it is recording 290,400 won.

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