BTC Fear & Greed Avoids Sub-30 Despite NASDAQ Composite Down

The hawkish Fed Chair Powell’s speech sent Bitcoin into a deep red. Partial recovery saw BTC bounce through S2 to end the day at $20,165.

US economic indicators tested buyers’ appetite ahead of the FOMC policy decision and all-important press conference.

The Fed raised interest rates by 75 basis points, which is in line with expectations. Bets on the Federal Reserve’s pivot in December also appeared to be justified, as the FOMC statement indicated a potential policy shift.

However, Fed Chair Powell poured ice water in hopes of a pivot, saying inflation would be too high and that one should move on. Powell also noted that “the final price level will be higher than previously expected.”

In response, the Nasdaq Composite fell 3.36%, dragging Bitcoin into the red.

Today, US factory orders, unemployment claims and the ISM non-manufacturing PMI will attract attention. We expect PMI and sub-components to have the biggest impact.

Bitcoin’s sensitivity to US economic indicators and the Federal Reserve leaves the correlation with the Nasdaq composite index in place in the short term. This morning the NASDAQ 100 Mini is down 21 points.

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