Bitfinex investors are betting on some upside after the Federal Reserve comments on Wednesday about inflation and asset purchases.

Bitcoin (BTC) might see its last trading day of downside as traders line up to cash in on the Federal Reserve meeting.

On Dec. 14, bids had started to increase on the major exchange Bitfinex in a signal that investors have the belief that BTC/USD will rise.

Time to “sell the rumor and buy the news?”

The Fed will provide some key information on what future asset purchases will be, as well as inflation during the meeting, and bets are increasing when it comes to the knock-on impact for both traditional markets and crypto.

Bitfinex’s order book has suggested that BTC traders are looking for a chance to “buy the news.”

As reported by Cointelegraph, if the Fed reduces its asset purchases it will effectively limit the availability of any “easy” money, and speeding up the process might pressure risk assets like BTC until there’s a slackening of policy returns.

For the near term, however, any buy-up would resemble the events from the prior month’s inflation data print, this will produce a conspicuous but short-lived increase to BTC.

Bitfinex investors are waiting in an area that is between $44,500 to $46,000 during Tuesday trading, with a spot price currently sitting at $46,800 after losses throughout the trading day.

“Think FOMC has a good opportunity to be a ‘buy the news’ and sell the rumor event,” William Clemente said.

Bitcoin investors are anything but docile

Elsewhere, the evidence on the exchange order books indicate whales are becoming increasingly bearish.

As noted by Material Scientist, large-volume investors have been continuously selling since Oct.

“They have not bought a single dip since Oct. and have been mainly TWAP-selling this whole time,” Material Scientist stated on Twitter.

Some exceptions have reached the headlines, and whales have indicated buying interest. Yet the data shows $60,000 resistance level is still rising with time.

“We have not yet seen any of the Bitcoin dips over the last thirty days bought with any real conviction,” said Material Indicators.

Author: Steven Sinclaire

Comments are closed.

Ad Blocker Detected!

Advertisements fund this website. Please disable your adblocking software or whitelist our website.
Thank You!