Bitcoin Bounces Around $23,000 – Awaiting This Week’s FOMC

Recently, the world’s largest crypto by market capitalization showed signs of consolidating ahead of the $23,000 resistance margin.

Bitcoin spent the weekend trading above that margin, even reaching close to $24,000 on sunday when BTC climbed up to its highest price since November 12.

On this Monday morning, the currency retracted back to $23,160 – going through a 1.55% decrease in the last 24 hours, according to CoinMarketCap.

Despite the recent stagnation, the market leading currency is still going through the best month of January of the last decade. Boasting on a 41% increase, the only time bitcoin had a better January was in 2013, when it reached close to 55%.

FOMC Meeting This Week

The Federal Reserve will gather for the first time in 2023 to decide on the next step in the organization’s interest policies for the rest of the year.

On Friday, reports regarding the country’s inflation status showed to be optimistic for the FED. The PCE, the committe’s prefferred inflation gauged showed signs of decreasing in the month of December, while consumer spending reports also showed indications of falling from 0.2% in Novemeber to 0.1% in December.

These indications are bound to make bullish investors extremely optimistic ahead of this week’s FOMC meeting. In all likelihood, the FED will still announce another interest raise, but that raise will likely be lower than the ones seen at the second semester of December.

If that happens, this would indicate that the Federal Reserve is finally putting inflation under control, which will eventually decrease America’s current record-breaking interest rates.

When the rates finally go down, borrowing money becomes easier. This creates a smoother playing field for assets classified as “risky” like crypto and stock.

If the next FOMC meeting proves to be favorable for currencies, bitcoin will most likely finish the month on top of the $23,000 resistance margin.

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