Fed decision could spark Bitcoin rally

Based on the outcome of the the Fed on December 15, Bitcoin’s price could finish its correction and move higher on the realization of the ‘sell the rumors, buy the news’ rule. Such a scenario is suggested by Bitfinex’s order book analysis.

Bitfinex laying down bids

Retail selling into the lows ahead of FOMC Meeting with funding negative across the board

Feels like we’re going to get a Buy The News event #Bitcoin $BTC pic.twitter.com/9Z69rJuL0T

— Zen (@Zen_Trades1) December 14, 2021

Traders have been placing buy orders in the $44,500–$46,000 range, while Bitcoin was trading above $47,600 at the time of writing.

Analyst Michaël van de Poppe also expects such a scenario.

Sell the rumour, buy the news.

— Michaël van de Poppe (@CryptoMichNL) December 14, 2021

During his testimony on November 30 before the Senate, Powell rejected the interpretation of the intensification of inflationary pressure as temporary. He pointed to the possibility of winding down asset purchases “a few months earlier than expected.”

The prospect of a faster tightening by the Fed has pushed traditional markets and Bitcoin into a modest correction.

As Glassnode analysts saw a predominance of conservative sentiment among traders, based on the state of the crypto-derivatives market.

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