Bitcoin and Ethereum Prices Gains in Anticipation of 50 Bps Rate Increase By US Fed

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Bitcoin and Ethereum prices saw modest gains Wednesday ahead of the Federal Reserve rate rise decision. Bitcoin (BTC), which gained more than 5% on Tuesday, as the CPI inflation came in at 7.1% against 7.3%. Bitcoin prices have risen nearly 1% to test the $18k resistance in the last hour.
Bitcoin trades at $17,900. This is nearly 4% more than the previous 24 hours. The trading volume has increased and the 24-hour lows and highs are $17.312 and $17.930, respectively. The Bitcoin Fear and Greed Index has also risen to 30 levels, which was the pre-FTX crisis level.

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Ethereum (ETH) is trading at $1.331, an increase of over 3% over the past 24 hours. Similar to Bitcoin, the ETH price has risen nearly 1% over the past few hours. The 24-hour low and high were $1,289 (or $1,341) respectively. The ETH price is trending strongly compared to BTC. Altcoins will rise as a result.
After four consecutive 75-bps rate increases, the Federal Reserve is expected raise the fed funds rates by 50 bps to 4.25-5.5% at its last monetary policy meeting. Investors will be keeping an eye on inflation and growth projections as the U.S. CPI continues its fall.
Wall Street anticipates a slowdown of rate hikes starting December, as suggested by Fed Chair Jerome Powell. This is after a 75-bps rate increase in November. JPMorgan, Goldman Sachs and Citi expect a 50-bps rate increase in December.
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Today, the UK announced that annual inflation fell to 10.7% in November, from 11.1% in October (a 41-year-high), beating forecasts of 10.9%. The prices of Bitcoin and Ethereum remained higher.
Futures tied to Dow Jones Industrial Average and S&P 500 remain flat on Wednesday, as investors remain uncertain about the Fed’s hawkish-dovish stance. Investors expect a lower interest-rate hike from the Federal Reserve following softening inflation data.

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According to the CME FedWatch tool, there is a 80% chance of a 50-bps rate increase. After the CPI data release, the value rose to 73.5%. The U.S. Dollar Index has fallen below 104. Although the stock markets have already responded, crypto investors are waiting for the Fed rate hike decision to confirm market bottom.
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