BTC Volatility Analysis for Fed Interest Rate, 14th December 2022

Data Analysis

On 14th December, 2022, the Federal Open Market Committee has decided to increase the interest rate by 75 basis points for a target interest rate at 3.75-4.00%.

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 62,270 BTC with prices swinging between 17,915.31 and 18,387.95, representing a swing of 2.57%. Subsequently, the trading volume increased by 23% to 76,673 BTC. Price action ranged from a low of 17,660.94 to a high of 18,350.00, a difference of 3.76%

15-Minutes Chart Analysis

Analysing on a lower time frame to get a more accurate picture, 9,549 BTC in trading volume was observed prior to the data release. Prices ranged between a low of 17,915.31 to a high of 18,387.95, a 2.57% change. Immediately following, trading volume increased significantly by 123% to 21,269 BTC. At this time, Bitcoin hit a low of 17,760.00 with a high of 18,350.00, a change of 3.22%.

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.