NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

3 Things Bitcoin Traders Should Watch in FOMC’s First Meeting of 2021

Yashu Gola
Yashu Gola
1 year ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin extended its pullback from its weekly high of $32,960 on Wednesday as the market’s focus shifted on the Federal Open Market Committee’s first meeting of 2021.

The flagship cryptocurrency dropped to an intraday low of $30,818, down about 5.5 percent from its opening rate. The appetite for riskier safe-havens weakened against a stronger US dollar and rising US 10-year Treasury note yields, causing declines in Bitcoin and gold markets.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin forms a 50-200 death cross on its 4H chart ahead of the FOMC meeting. Source: BTCUSD on TradingView.com
Bitcoin forms a 50-200 death cross on its 4H chart ahead of the FOMC meeting. Source: BTCUSD on TradingView.com

Market participants eye an update from Jerome Powell about the Federal Reserve’s view of the economic outlook, fiscal stimulus, and future tapering. Based on his future guidance, Bitcoin traders can determine their medium- and long-term outlook, given the cryptocurrency’s growing correlation with the US markets since the March crash.

Here are the three things they should watch in the Wednesday meeting.

#1 Economic Recovery

Since Fed officials finished their final meeting of 2020 in December, new data has piled up that shows the US economy in a weaker state than before. They include a rise in unemployment claims and a decline in retail sales, both pointing to a slower-than-expected recovery despite monetary tools available.

Nevertheless, the outlook of a better US economic rebound in the second half of 2021 has improved due to the rollout of COVID-19 vaccines. That could prompt Mr. Powell to follow a wait-and-watch strategy while keeping their existing policy tools intact.

Market participants also expect that the Fed chairman provides clearer indications of the short-term outlook—and whether or not he believes in a faster economic recovery in the second half of the year. Any positive outlook from him would weigh negatively on Bitcoin—and vice versa.

#2 Bitcoin against Taper Tantrum

Investors fear that the Fed may consider scaling back its monetary support for financial markets in 2021 should it expect a robust economic rebound.

The worries come from a small number of regional Federal bank presidents that knocked the bond markets in early January by speculating that the US central bank would wind down its $120 billion per month asset purchase program.

But based on Mr. Powell’s previous comments on the matter, the Fed won’t stop backing their indefinite bond-buying strategy prematurely. Ken Taubes, chief investment officer for the US at Amundi, says the economic environment would improve by this year’s summer and fall seasons.

“The heat in the kitchen is going to get pretty hot for the Fed,” he added while anticipating that Mr. Powell would wind down bond-buying if the rebound sustains.

Withdrawing from purchasing short-term debts would push the yields higher, making it attractive for mainstream investors to re-allocate their riskier investments into the bond market.

Bitcoin and gold do badly when the Treasury yields go up.

#3 New Dovish Members

The Fed’s likelihood of coming out of the January meeting dovish is higher due to a new set of voting members at the FOMC.

Its annual rotation has brought Thomas Barkin from Richmond, Mary Daly from San Francisco, Atlanta Fed President Raphael Bostic, and Charles Evans from Chicago into the committee.

According to Kathy Bostjancic, the chief US financial economist at Oxford Economics, the new members prevailingly dovish. That means the US central bank would less likely deviate from its ultra-accommodative approach.

In turn, that could work in favor of Bitcoin that benefits from lower bond yields and quantitative easing policies.

Tweet123Share196ShareSend
Yashu Gola
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN.

Read more

Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Close

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin Price Coiling Up

Bitcoin Price Coiling Up — Is a Surge Past $110K on Deck?

Bitcoin price started a fresh increase above the $107,500 zone. BTC is now consolidating and might struggle to continue higher...

Aayush Jindal 4 hours ago

Ethereum Liquid Staking Hits New ATH With 35.5 Million ETH Locked – Will Price Follow?

Ethereum (ETH) is up more than 8% over the past 48 hours, climbing from around $2,400 on July 1 to...

Ash Tiwari 4 hours ago
Litecoin Surges Past Descending Resistance – Bulls Target $97.10 Level

Litecoin Surges Past Descending Resistance – Bulls Target $97.10 Level

Litecoin (LTC) is back in the spotlight as bullish momentum sweeps across the crypto market. After months of volatility and...

Sebastian Villafuerte 5 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Under Stress: Tron Revenue Drops As Nearly $190M Flows Out

Christian Encila 2 hours ago
青色のプレゼントボックスの上にあるBTC

Bitunixボーナスキャンペーン開催中|最大710ドルの獲得手順

rinsuzuki 1 hour ago
Dogecoin

Dogecoin Bounces Back With 8% Gain—Is $0.26 In Sight?

Keshav Verma 3 hours ago

Premium Sponsors

Press Releases

  • Top kryptoměna ke koupi dříve, než vzroste o 2 200 %, podle Cathie Wood

    Top kryptoměna ke koupi dříve, než vzroste o 2 200 %...

    7 hours ago
  • The smartest way to make money in 2025: Invest in cloud...

    14 hours ago
  • Od Bitcoinu k BTC Bull: Kde leží skutečný potenciál?

    ...

    14 hours ago
  • Bitcoin vs. Gold: Which Is the Best Investment In 2025?

    15 hours ago
  • Profit of $5,735, senior trader uses Ripple (XRP) to open...

    15 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.