Bitcoin Prices Still Detained Ahead Of The Fed's Interest Rate Tightening Decision

Bitcoin awaits US Economic Data and ETF Bitcoin Decision (photo: Pixabay)

JAKARTA - After the Chairman of The Fed, Jerome Powell stated the potential for a strict policy of the Fed that was clearer last week, the Financial Expert Ajaib Kripto, Panji Yudha said that the Bitcoin movement was stuck.

Powell reiterated the central bank's commitment to continuing strict policies, but still with a cautious approach. However, Powell also mentioned that the Fed is ready to raise interest rates further if needed.

"This statement refers to the readiness of the central bank, which has the potential to continue strict policies to control inflation, achieving a target of 2 percent," Panji said in a statement received.

In the past week, Panji has seen the movement of the Bitcoin price limited by trying to stay above the support level at US$25,000 and the nearest resistance area at US$26,800.

Sentiment this week

Bitcoin touched an annual high of $31,000 last July after BlackRock, the world's largest asset manager, filed a Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission.

This BlackRock move was then followed by Valkyrie and Hasdex. The US Securities and Exchange Commission (SEC) has scheduled to provide updates on several Bitcoin ETF submissions in the first week of September 2023.

The first week of September 2023 is the first maturity regarding the decision for a number of Bitcoin ETFs. So it is likely that the SEC will postpone the decision until the second deadline in October 2023," Panji said.

In addition, Non Farm payroll (NFP) data for August and Personal consumption expenditure (PCE) data, are expected to determine the plan to increase the Fed's interest rate in the future.

"Regarding the impact of the release of Core PCE and NFP data to the crypto asset market, data that is higher than expectations can boost the value of USD, while it has the potential to suppress Bitcoin movement, and vice versa," he concluded.