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Waiting for the “Fed” – Bitcoin presses the pause button at the end of the month

Bitcoin (BTC) is only moving sideways along the $ 47,000 mark on August 27th, although investors are likely to wait and see given an ongoing conference of the American central bank.

Bitcoin price chart (Bitstamp). Source: TradingView

Cold feet at the end of the month?

As the data from Cointelegraph Markets Pro and TradingView show, BTC / USD will fluctuate around $ 47,000 on Friday.

In the last 24 hours there was comparatively little movement, which is probably due to the fact that the market is waiting for the decision of the “Federal Reserve” on the one hand and on the other hand options contracts worth 2 billion US dollars will expire at the end of the month.

“There is currently no strong reaction,” as the crypto analyst Rekt Capital sums up. He adds:

“After all, a daily close of $ 47,000 would be a positive sign.”

This would mean that the market-leading crypto currency would at least be a little closer to the large US $ 50,000 after the course crashed against this hurdle during the week.

Meanwhile, Cointelegraph expert Michaël van de Poppe is sticking to his previous forecast of $ 44,000 support as a short-term target price.

“That’s still my goal for Bitcoin,” he says Twitter writes.

The expiry of the Bitcoin options usually generates more fear of selling pressure than actual selling pressure, because the price often remains virtually unaffected. Nonetheless, caution is advised, as on Friday open interest reached a multi-month high at a value of $ 9.19 billion.

Open Interest for Bitcoin Options. Source: Bybt

What is the Fed doing?

As Cointelegraph had reported, the virtual conference event of the US central bank should provide information about the further thrust in the final phase of the corona pandemic.

It is suspected that the “Fed” is scaling back its bond purchases, which in turn could have a negative impact on the stock market, which is currently high.

It remains to be seen whether this will in turn boost demand for alternative financial products. In the run-up to the conference, the US dollar had already climbed, which is usually a bad omen for the market-leading cryptocurrency.

US dollar index. Source: TradingView

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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