The U.S. Federal Reserve’s rate decision could play an important role in bitcoin prices

The price of bitcoin has already rebounded 10% from its low of $15,100 recorded on November 21.
At the end of a two-day U.S. Federal Open Market Committee (FOMC) session (December 13-14), an interest rate decision will be announced by U.S. central bank Governor Jerome Powell at a press conference on December 14.
The U.S. Federal Reserve has already raised the rate four times consecutively by 0,75%, bringing it to a band of 3,75%-4%. Although the interest rate is still far from its expected 5-5.25% peak, and the core CPI keeps rising, the U.S. central bank might raise the rate this time by 0.5% instead of 0.75%. Such “dovish” position of the US Federal Reserve will be a strong signal for the world financial markets: Washington is ready to provide them with enough dollar liquidity.
In such a situation, by the end of the week bitcoin price is able to overcome the level of $18,000 and return to the growth trajectory in the foreseeable future. The bitcoin price will once again find itself on a growth parabola, according to an analyst known as Plan B, who estimates in his latest forecast the potential for bitcoin’s value to rise to $100,000 in 2023.
However, a significant risk remains in which direction further regulation of cryptocurrencies in the U.S. will lean. A congressman from the U.S. Senate Banking Committee, John Tester, said on NBC’s December 11 broadcast that he sees no reason why cryptocurrencies should have existed: “The problem is that if we regulate them, it will allow people to think that they are real.” The collapse of crypto exchanges FTX gave additional arguments to those in the U.S. government who are skeptical of cryptocurrencies.
The U.S. authorities’ decision to regulate cryptocurrencies will determine the future behavior strategy of institutional players and large bitcoin owners, who are often the same individuals. So far, 80% of the losses that occur in the cryptocurrency market #1 are caused by bitcoin sales by such cryptosphere participants: since mid-July, most digital addresses with balances over 10,000 BTC continue to sell more than buy bitcoins.
At the same time addresses with balances from 1 to 10 thousand BTC prefer to increase their holdings in bitcoins, while the number of addresses with small balances up to 1 BTC is gradually growing, as evidenced by Santiment.

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