Bitcoin and altcoin prices have paused their rally as the U.S. Federal Open Market Committee (FOMC) meeting approaches, scheduled for October 31 and November 1, 2023. With cryptocurrency traders closely observing the potential for interest rate changes, current data indicates a slowdown in inflation. This has led to a 96.2% probability of unchanged rates according to the CME FedWatch Tool.
However, Federal Reserve officials, including Fed Chair Jerome Powell, have suggested a possible rate hike in the December 13 meeting. Powell's comments on the health of the U.S economy are considered crucial by investors who currently anticipate a pause in interest rate hikes at the upcoming FOMC gathering.
The CME FedWatch Tool suggests a 19.8% chance of a minor 0.25% rate hike from the current range of 550-575 bps. Any insinuations about future rate hikes from Powell could provoke reactions in Bitcoin price, S&P 500, and Nasdaq Indices.
In addition to the FOMC meeting, key events this week that could influence the markets include labor market reports, ISM Manufacturing and Services PMI, JOLTs Job Openings, factory orders, and earnings reports from 20% of S&P listed companies.
Amid these developments, Bitcoin's rally has paused due to significant on-chain developments noted by CryptoQuant research head Julio Monero. The BTC price is currently $34,200, with a trading volume surge of 35% over the last 24 hours. The 24-hour low and high are $34,098 and $34,743 respectively.
CoinGape has indicated that profit booking by short-term Bitcoin holders could disrupt Bitcoin's potential rally. The significant $35,000 resistance level for Bitcoin is under intense scrutiny as traders await further developments.
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