Crypto Remains Stable Prior to the Fed Statement
By Space Coast Daily // June 18, 2021
Crypto is a very popular topic right now around the world. There are millions of people who are showing interest in this market, which is making even more people investing in the crypto world.
Statements from world-class investors as well as influencers further impact the crypto popularity, once again sending the prices higher.
However, the price of Bitcoin is holding stable right now prior to the statement of the US Federal Reserve regarding monetary policy. Market participants await some clues on the possible direction of the central bank’s actions regarding cryptos.
Prior to the statement of the Fed, Bitcoin has been trading between $39,400 and $41,300 since Monday. Although the prices were very much stable prior to the announcement, they are expected to change drastically over the coming days as the central bank makes its statement.
Previously, we have already seen how different types of statements can influence Bitcoin prices. In May, over just 8 days, the price of Bitcoin fell from $58,000 to around $30,000. One of the factors was the official data which showed the US consumer price index had surged to the highest levels in over three years.
However, since the price of Bitcoin as well as other cryptos has somewhat dropped over the past few months, it is expected that the impact of the Fed statement might be positive for Bitcoin.
Fed statement and crypto trading
Statements like this are very important when it comes to volatile markets like Bitcoin. The price of cryptocurrencies is highly volatile, which means that they can change drastically over a shorter period of time.
Such drastic changes can be caused by even the slightest news in the market, which includes statements, comments, or even just mentions by companies or even people who are well-known around the world.
Over the past few months, we have seen how impactful such events can really be on crypto prices. 2021 has proved to be an already very successful year for crypto trading. The price of crypto increased drastically, hitting an all-time high of around $64,000 in April.
There were several reasons for this increase, including hype created online by crypto enthusiasts as well as some official statements around the world.
This was followed by a massive drop in the price of Bitcoin. After Tesla’s CEO Elon Musk announced that the company would halt supporting Bitcoin, the price dropped drastically over 8 days. In May, the price of Bitcoin dropped to almost $30,000.
Just recently, the statements of the hedge fund manager and billionaire Paul Tudor supported the increase of Bitcoin price. Tudor talked about the importance of diversification of the trading portfolio, saying that crypto, specifically Bitcoin, might be a great investment in the future.
A day before Tudor’s statement, Elon Musk wrote on Twitter that Tesla would probably continue accepting Bitcoin payments at some point in the future, increasing the price of Bitcoin by $700. After the comments of Tudor, the Bitcoin price was sent to over $40,000.
This shows exactly how impactful even the slightest comments about crypto can be on the price. Because of this, the statement of the Fed is a very important thing that traders should keep an eye on.
The popularity of crypto trading
Although high volatility is scaring some traders, it is also making it more attractive for others as it creates a lot of opportunities for short-term profits. There are millions of people who are investing in crypto, specifically Bitcoin.
The popularity of crypto trading has become even more popular after the crypto price boom of 2021. Although crypto trading is becoming more popular day by day, it should also be noted that it is a bit hard to stay up-to-date with everything going on in the market, because of which, making decisions might be a bit challenging for some traders.
However, there is a way to trade crypto without having to analyze and research the market all the time. Automated trading is a great way for beginners to trade crypto without having to spend hours researching.
There are numerous software companies that have developed their own versions of auto traders, one such is Bitsgap, which offers traders trading bots. Bitsgap bot is capable of not only analyzing the market but also opening and closing orders. Because the bot is available on numerous globally acclaimed exchanges, it is easily accessible for millions of traders.
Such auto-traders are making the market even more popular, especially for beginners.
As mentioned already, the price of Bitcoin looks very stable prior to the statement of the Federal Reserve. This leaves a lot of room for development. The much-anticipated announcement might change the current situation in the market drastically.
Previously, Fed statements have shown to have an impact on the cryptocurrency market, which is why so many investors are looking forward to hearing what the central bank of the country will have to say.