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    Bitcoin Nears $24K as Fed Rate Hike Looms; Ethereum Deploys Shadow Fork


    The world’s largest cryptocurrency, Bitcoin (BTC), has been trading close to 3% lower as of 9:02 a.m.[0] Presently, the cost of ET is approximately $[1] Last week, Bitcoin-related funds dominated digital-asset investment products inflows, accounting for almost all of the $117 million coming in.[0]

    The price of Bitcoin has declined less than 1% over the past 24 hours to $23,250, after coming within striking distance of $24,000 in a spike over the weekend. Bitcoin is currently trading at $22,604.59, down 1.4 percent on an overnight basis.

    On Wednesday, February 1, 2023, at 2 pm EST, the U.S. Federal Reserve will announce its latest interest rate adjustment. The CME FedWatch Tool reports that practically all analysts are predicting a quarter-point increase of 25 basis points.[2]

    Last week, the BTC/USD rate attained a peak of $23,955 and has increased by over 40% since the start of[3] Glassnode, a crypto analytics platform, recently reported that BTC's price has increased beyond three significant on-chain metrics due to its recent positive momentum.[3]

    In the base case scenario, the Federal Reserve will raise the interest rate by 25 basis points and indicate that further rate increases are necessary.[3] Consequently, any increase beyond this should be beneficial for the dollar and detrimental for Bitcoin.[3] If the hike is perceived to be a hawkish extension by investors, then a drop-down to around $20.7k can be expected.[4]

    On Monday, Ethereum developers deployed the Shadow Fork in preparation for the Shanghai Hard Fork, scheduled for March 2023.[5] The shadow fork is anticipated to act as a testing platform for the Shanghai upgrade, enabling developers to spot any potential complications or glitches.[6] The Shanghai Upgrade is important as it will enable “stakers” to take out the ETH that has been staked.[6]

    As the market awaits the Federal Reserve decision on interest rates due Wednesday, bitcoin educator Dan Held said: “Bitcoin feels poised for a breakout.”

    This could be a very volatile week for the crypto and broader markets, as the correlation of Bitcoin and the broader crypto market with the S&P 500 and the US Dollar Index is very close.[2] Ultimately, it is all about the interest rate level and the reaction to the Fed’s decision.[3]

    0. “Crypto Markets Today: Bitcoin Dips Below $23K Ahead of Fed's Meeting” Yahoo Finance, 30 Jan. 2023,

    1. “Bitcoin retreats from $24,000 as crypto investors await Fed rate meeting” Yahoo News Australia, 30 Jan. 2023,

    2. “Bitcoin And Crypto This Week: Here's What Will Be Important” Bitcoinist, 30 Jan. 2023,

    3. “The Federal Reserve meeting looms large as the Fed's hawkishness may send Bitcoin lower.” CoinJournal, 30 Jan. 2023,

    4. “FOMC: How Will Bitcoin React to a 25 BPS Hike?” Watcher Guru, 30 Jan. 2023,

    5. “Cryptocurrencies Stay Bullish As Bitcoin Heads for $25000, Ahead of FED Meeting” FX Leaders, 30 Jan. 2023,

    6. “Cryptos Falter But Market Cap Holds Above $1 Trillion” RTTNews, 25 Jan. 2023,

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