Cryptocurrency

Bitcoin price decline may end on Wednesday as Bitfinex bid hints at the Fed’s “buy news” plan

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Bitcoin (Bitcoin) May see a drop on the last day as buyers line up to cash out at the Federal Reserve Board meeting on Wednesday.

On December 14, the bids of the major exchange Bitfinex began to increase. This is a clear sign that the market believes that BTC/USD is destined to rise.

Is it time to “sell rumors and buy news”?

The Fed will provide key information about the future of asset purchases-a form of quantitative easing-and inflation at the meeting, and people are increasingly betting on the chain reaction of the cryptocurrency market and traditional markets.

The data in the Bitfinex order book indicates that Bitcoin traders are looking for “buy news” opportunities.

As Cointelegraph Report, The Fed’s reduction of asset purchases effectively limits the availability of “loose” currencies, and speeding up this process may put pressure on risky assets such as Bitcoin until the policy is relaxed.

However, in the short term, the acquisition will echo the events of last month Inflation data Print, this produced a significant but short-term boost to BTC.

Bitfinex traders waited between approximately US$44,500 and US$46,000 on Tuesday, and the spot price is currently US$46,800. Loss day.

“Thinking that FOMC is likely to become an event of’selling rumors and buying news’,” analyst William Clement Add to.

“Match it with illiquid supply back to annual highs and some large Bitfinex bids. Waiting for $53,000 to start bidding. It’s nice to miss some moves and basically pay the confirmation fee.”

Bitcoin traders are never docile

Elsewhere, there is still evidence of growing bearish whales in the exchange order books.

related: “Monster bull market action” means that whales can ensure the next Bitcoin price surge

As famous Written by Material Scientist, the creator of the on-chain analysis resource Material Indicators, since October, high-volume traders have been selling continuously.

“Since October, they have not bought a single drop, and they have always been straightforward TWAP sales,” the materials scientist commented on Twitter.

Some exceptions are Make headlinesAnd the whales-the group with the largest transaction volume-have shown interest in buying. However, according to the data, the resistance of $60,000 is still increasing over time.

Material Indicators added: “We haven’t seen BTC actually fall with confidence in the last month.” Separate post.