"Get ready investors, all kinds of situations can happen during the FOMC later."
Cryptocurrency king Bitcoin (BTC) appears to be moving flat for the past two days ahead of the Federal Open Market Committee (FOMC) meeting which could cause the price to react unexpectedly.
The streak, the price of BTC is currently hovering below the $30,000 level as investors are watching the situation while waiting for the digital asset to break through $32,000 which is a sign of bullish momentum has begun.
Although the Federal Reserve (Fed) last month decided to stop raising interest rates, investors may be disappointed during the FOMC later as the United States (US) central bank has been aiming to raise rates for the past two months.
Through observations, the FOMC is expected to raise interest rates by 25 basis points early Thursday morning tomorrow which will increase the target rate from 5% up to 5.25% to 5.25% up to 5.50%.
Following the increase in interest rates, the price of BTC could experience a decline at $27,947 but the best opportunity for investors to buy it is when the digital asset continues its decline at $25,000.
This is because investors will not sell their BTC holdings immediately if the price drops as most investors are now neutral and are not in a state of anxiety or fear.
So here it can be seen that the crypto market will do a horizontal movement first before rising again, but if the macroeconomic situation worsens then investors can expect a bigger price drop.
As of this writing, the price of BTC has risen by 0.19% to $29,131 in the last 24 hours with a market capitalization of $566 billion but is still down 2.86% over the last week.
