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Will the Fed prevent BTC price from reaching $28K? — 5 things to know in Bitcoin this week

Bitcoin (BTC) enters a new week with a question mark over the fate of the market ahead of another key United States monetary policy decision.

After sealing a successful weekly close — its highest since mid-June — BTC/USD is much more cautious as the Federal Reserve prepares to hike benchmark interest rates to fight inflation.

While many hoped that the pair could exit its recent trading range and continue higher, the weight of the Fed is clearly visible as the week gets underway, adding pressure to an already fragile risk asset scene.

That fragility is also showing in Bitcoin’s network fundamentals as miner strain becomes real and the true cost of mining through the bear market shows.

At the same time, there are encouraging signs from some on-chain metrics, with long-term investors still refusing to give in.

Cointelegraph takes a look at the week’s possible market movers in a tense week for crypto, equities and more.

Fed to decide on next rate hike in “another fun” week

The story of the week, all things being equal, is no doubt the Federal Reserve rate hike.

A familiar tale, the Federal Open Markets Committee (FOMC) on July 26-27 will see policy makers decide on the extent of the next interest rate move, this tipped to be either 75 or 100 basis points.

U.S. inflation, as in many jurisdictions, is at forty-year highs, the its advance appears to have caught the establishment by surprise as calls for a peak are met with even larger gains.

“Should be another fun one,” Blockware lead insights analyst William Clemente summarized on July 25.

The interest rate decision is due July 27 at 2pm Eastern time, a diary date which could well be accompanied by increased volatility across risk assets.

This has the potential to be exacerbated, one analyst warned, thanks to low summer liquidity and a lack of conviction among buyers.

“Entering ECB/FOMC/Tech Earnings amid the lowest liquidity of the year. Market is back to overbought. Bulls, let it ride,” Twitter account Mac10 wrote.

A previous post also flagged Q2 earnings reports as potentially contributing to a downwards move…


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