Bitcoin has reclaimed the $77,500 level on Thursday, approaching the $78,000 zone after a dip to $76,200 earlier in the week. XRP remains near $1.37, holding support between $1.40 and $1.30. The broader market faces potential volatility as the Federal Reserve is scheduled for an interest rate decision on September 15 and 16. Bitfinex noted that September has historically been bearish for Bitcoin, with an average return of −2.95% since 2013, and expects an intra-month correction but odds favoring continuation higher. The recent price surge followed President Donald Trump’s announcement that the U.S. is considering buying a “sizeable” amount of Bitcoins. The Fed meeting will likely determine the market’s direction.
Bitcoin has reclaimed the $77,500 level on Thursday and is gearing up to breach the $78,000 zone. The leading cryptocurrency dipped to the $76,200 level on Wednesday, sparking fears of a downturn.
XRP also remains on the front foot this month with prices hovering around the $1.37 zone. It has held on to its support levels and maintained a healthy balance between $1.40 and $1.30.
The broader cryptocurrency market might soon face heightened volatility as the Fed is scheduled for an interest rate decision on September 15 and 16. The market mostly fluctuates on the heels of the meeting, leading to instability.
As Bitfinex wrote in its recent blog, cautioning users about the market’s performance during the Fed interest rate decision, it also provided historical context. The trading platform expects a price pullback, warning traders to be on their toes mid-September.
“September has historically been a bearish month for Bitcoin, with an average return of -2.95 percent since 2013. With August’s momentum carrying into the month, we expect that any intra-month correction leaves the odds in favour of continuation higher on the higher timeframes,” read the report.
The sudden rise in value came only after President Donald Trump announced last month that the U.S. is considering buying a “sizeable” amount of Bitcoins. This led to major cryptocurrencies surging in value, including XRP.
The market has to sustain the uptick for another month to prepare itself for the next leg. The Fed meeting will decide which direction the market takes in the next two weeks.
