BTC Volatility Analysis for Fed Interest Rate, 27th July 2022

Data Analysis

On 27th July, 2022, the Federal Open Market Committee has decided to increase the interest rate by 75 basis points for a target interest rate at 1.50-1.75%.

To see the impact and volatility of BTC's price during the Fed Interest Rate release, we will first observe the difference in volume and price changes on the 4-hours chart, followed by the 15-minutes chart. Change in prices will be be determined by the high and low prices instead of the opening and closing prices.

4-Hours Chart Analysis

In the period prior to the release, the trading volume was 37,552 BTC with prices swinging between 21,392.49 and 21,740.00, representing a swing of 1.60%. Subsequently, the trading volume increased considerably by 97% to 73,834 BTC. Price action ranged from a low of 21,617.24 to a high of 23,112.63, a significant difference of 6.47%

15-Minutes Chart Analysis

Analysing on a lower time frame to get a more accurate picture, 2,496 BTC in trading volume was observed prior to the data release. Prices ranged between a low of 21,599.20 to a high of 21,724.64, a 0.58% change. Immediately following, trading volume increased significantly by 386% to 12,125 BTC. At this time, Bitcoin hit a low of 21,617.24 with a high of 22,222.00, a significant change of 2.72%.

About Federal Reserve Interest Rate Decision

The Federal Open Market Committee (FOMC) has eight regularly scheduled meetings each year, but they can meet more often if the need should arise. The meetings are not held in public and are therefore the subject of much speculation on Wall Street, as analysts attempt to predict whether the Fed will tighten or loosen the money supply with a resulting increase or decrease in interest rates.