Bitcoin is trading around $80,000 as markets digest the US Federal Reserve’s (Fed) decision on interest rates. On Wednesday, the cryptocurrency reached $81,687 before falling back below $80,500. These rapid movements marked a choppy session, dominated by monetary expectations. After keeping its rates unchanged, the Fed saw the price rise towards $81,000 in the following minutes.
In brief
- Bitcoin is moving around $80,000 after a session marked by strong fluctuations.
- The Fed is keeping its interest rates unchanged, in line with market expectations.
- The price of BTC reached $81,687 before falling below $80,500.
- Liquidations exceed $167 million in the crypto market, including nearly $58 million for bitcoin.
Bitcoin around $80,000 after big swings
The price of bitcoin crossed $81,000 on Wednesday, in a climate marked by anticipation of the American monetary decision. This progression did not last, however, since the price then fell back below $80,500. This level corresponded approximately to that observed twenty-four hours previously. Investors thus witnessed several rapid movements, with no lasting exit from the zone between $80,000 and $82,000.
Before the official announcement, the markets widely anticipated that key rates would be maintained. According to theCME Group’s FedWatch toolthe probability of a status quo reached around 90%. Economists and analysts therefore expected the Federal Open Market Committee (FOMC) to maintain its monetary policy. Despite pressures from persistent inflation, forecasts favored a pause before the upcoming US mid-term elections.
The price movements began on Tuesday afternoon, when the cryptocurrency suffered a rejection around $80,500. It then rose towards $80,700, before a sudden rise propelled it to $81,136. Around 5:35 p.m. US East Coast time, the price fell again, before gradually rebounding. This recovery movement almost erased the losses recorded before midnight.
On Wednesday, bitcoin continued its rebound during the first hours of the session. Its price reached an intraday high of $81,687 and then briefly stabilized around $81,500. However, the selling pressure quickly took over and brought the price below $80,400. This new drop pushed back hopes of a quick exit from the $80,000 to $82,000 range.
Bitcoin at $80,000: the Fed keeps its rates unchanged
At 2 p.m. US East Coast Time, the Federal Reserve announced the maintenance of its key rates. This decision corresponded to the majority expectations of the financial markets. In the following minutes, bitcoin rose back to around $81,000, recording an increase of around 0.5% over twenty-four hours. The immediate reaction accompanied the announcement, without confirming a lasting recovery.
In his press releasethe FOMC described a US economy that is growing at a sustained pace. The committee also highlighted the resilience of domestic consumption, the strength of capital investment and strong productivity growth. According to his observations, job creations followed the evolution of the active population. The unemployment rate, for its part, changed little during the period examined.
The Fed nevertheless recalled that inflation remained high and that uncertainty remained significant, particularly due to geopolitical developments. The committee reaffirmed its commitment to price stability. These elements constitute an important context for financial assets, whose prices can react quickly to monetary announcements. Maintaining rates has therefore not prevented fluctuations in the cryptocurrency market.
The variations recorded during the last twenty-four hours have also caused liquidations on the derivatives markets. According to Glassnode, these rapid movements put pressure on players who used high leverage. When prices change suddenly, certain positions no longer have sufficient guarantees and platforms can close them automatically. This mechanism sometimes accentuates movements already underway on the markets.
Bitcoin at $80,000: liquidations exceed 167 million
Coinglass data show that bitcoin-related liquidations approached $58 million on Wednesday. Short positions accounted for more than $46 million of that amount. These positions allow traders to bet on a price decline, but they become vulnerable when the market rises quickly. The rebound observed after the Fed’s announcement therefore contributed to weakening certain sellers.
Across the entire cryptocurrency market, liquidations exceeded $167 million. Short positions accounted for about $110 million of the total. These figures illustrate the consequences of rapid changes in price direction. They also show that variations do not only concern the main cryptocurrency, but affect derivatives markets more widely.
In the short term, bitcoin staying around $80,000 will be an important level to watch. Stabilization above this area could encourage a lull after recent movements. Conversely, a further decline could prolong uncertainty and increase pressure on leveraged positions. Market developments will depend in particular on upcoming economic data and signals from the Fed regarding inflation.
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