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Bitcoin Price Dip Looks Set to End on  Wednesday Owing to Bitfinex Bids

As a result of Wednesday’s comments from the Federal Reserve on inflation and asset purchases, Bitfinext traders are now betting on some upside. Over the past couple of months, the price of BTC has been extremely volatile. Bitcoin has had its highs and lows over the course of the year. The coin achieved its all-time record high of $68,000 in November and then crashed early in December below the $50,000 mark. 

However, Bitcoin (BTC) could look forward to its last day of such pitfalls as buyers and traders line up to cash in on Wednesday’s Federal Reserve meeting. 

On December 14, there was an increased inflow of bids on a major exchange Bitfinex in a striking sign that the entire market believes BTC/USD is poised to gain. 

Impact Of Federal Reserve Meeting On BTC

The Federal Reserve meeting which is slated for Wednesday aims to deliver vital information on the future of asset purchases as well as information pertaining to inflation. And bets are beginning to rise in relation to the knock-on impact for both digital and traditional markets. 

The central bank is also expected to discuss speeding up the end of its bond-buying program and it expects to hike interest rates by the start of 2022. If the Fed decides to go this route, it could spell a rise in interest rates on both crypto and traditional markets.

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This expected hike in interest rate by the Central bank has been widely anticipated by investors all around the world including BTC traders. Traders and miners of Bitcoin eagerly await the conclusion of the Fed as this could lead to an increase in the price of BTC.

Time to “Bull The Rumor And Sell The News” 

The most popular strategy used by traders expecting the value of a coin to rise is in most cases “Buy the rumor and sell the news” which is sometimes the most efficient method. Bitcoin traders have previously been bamboozled by price fluctuations and volatility over the course of the year. But as a result of the upcoming Federal Reserve meeting, BTC traders nurse some perceived thoughts that the price of Bitcoin could go up. 

According to data collected from Bitfinex’s order book, Bitcoin traders are cueing up an opportunity to “sell the news”. As reported by Cointelegraph, the Feds narrowing its assets purchases successfully limits the availability of money, and fast-tracking the process could pile pressure on risk assets like BTC until the return of a relaxed policy. 

However, on a short-term basis, a load up on BTC would amplify events from November’s inflation. This might lead to a notable but short-lived boost in the price of BTC.

Bitcoin Traders Are All But Docile
Elsewhere, there is evidence of increasingly bearish whales persisting on order exchange books. 

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As stated by Material Scientist, the developer of on-chain analytics resource material “Indicators”, a large number of traders have been constantly selling since October. According to him, “they’ve not bought a single dip since October and have been straight-up-TWAP-selling all this time”. 

However, some minor exceptions hit the headlines, and whales being the biggest volume cohort of exchange activities, have indicated buying interest. Although from the data reported, the $60,000 resistance is still growing with time. 


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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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