The crypto market rebound witnessed in the first few days of 2023 turned muted after the release of FOMC minutes. The total crypto market volume decreased by 2.08% over the last 24 hours. Bitcoin and Ethereum prices hold near the $16.8K and $1,250 levels, respectively.
Will the hawkish Federal Reserve's restrictive interest rate hike to curb inflation in the coming months impact the anticipated Bitcoin and Ethereum bullish rally in 2023?
Highlights From the FOMC Minutes
Key points from the minutes of the Federal Reserve's December FOMC meeting released on January 4 paint an interesting picture for the crypto market in 2023.
The CME FedWatch Tool indicates a 64.2% possibility of a 25 bps rate hike and a 35.8% possibility of a 50 bps hike in February. The possibility of a 50 bps rate hike increased after the FOMC minutes release.
Moreover, the U.S. dollar index (DXY) remained above the 104 level on Thursday. The futures tied to stock market indexes trade marginally higher as FOMC minutes induced mixed reactions in the markets.
Bitcoin and Ethereum Price in 2023
Wall Street banks anticipate a Fed pivot in 2023 as the central bank wants to continue interest rate hikes this year. Experts predicted the change in the monetary and economic policy cycles in mid-2023.
Bitcoin price is currently trading near the $16.8K level, above the 50-EMA at $16,714. The BTC price will show low volatility due to the Bollinger Band Squeeze. After the FOMC minutes release, the trading volume dived lower. Thus, it indicates that the price will continue to make range movement.
Crypto analyst Michael van de Poppe predicts Bitcoin is poised to run up to $17K before the next FOMC rate hike decision on February 1. However, the BTC price could witness a correction after the meeting. People looking for longs could go around $16.5-16.6K.
Meanwhile, Ethereum price can also have a better upside move before a correction near the FOMC meeting. Ethereum is currently trading at $1,252, moving sideways with low trading volume.
The recent price jump in ETH is due to the renewed whale activity in Ethereum. In the last 24 hours, over 600 ETH transactions worth more than $100K have taken place on the Ethereum blockchain, as per Santiment.
Michael van de Poppe earlier suggested investors to go long on Ethereum near $1,170 as it is the crucial support level for Ethereum.
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