During the European session, Bitcoin is trading sideways near $20,400, ranging between $20,350 and $20,800. As expected, the buyer-seller tug-of-war continues ahead of the FOMC and Fed Fund rate decision on November 2.
The industry’s leading asset, BTC, has shown resilience recently, bringing back bullish sentiment among crypto investors and analysts.
El Salvador’s Bitcoin Purchases are Confidential: Trustee
BANDESAL, El Salvador’s development bank, set up a $150 million trust fund to ensure the convertibility of the local currency to US dollars for use by consumers and businesses.
Since Bitcoin became legal cash in El Salvador, President Nayib Bukele has made frequent Twitter announcements about the country’s BTC purchases. However, the non-governmental anti-corruption bureau ALAC El Salvador was recently refused access to data from the state development bank BANDESAL regarding Bitcoin transactions in El Salvador.
El Salvador’s development bank, BANDESAL, set up a trust fund with $150 million to ensure the country’s inhabitants and businesses would always have access to US dollars.
El Salvador’s Bitcoin purchases are confidential, thus their request for disclosure was denied.
To paraphrase their official statement:
The confidentiality limits the possibility for citizens to access and receive information on the operations carried out with public funds by BANDESAL.
In response to the denial, ALAC El Salvador pointed out that the money used to buy bitcoins came from the government’s coffers.
FOMC Meeting & Fed Rate Decision Ahead
A decision on interest rates from the Federal Open Market Committee and the Federal Reserve is expected tomorrow, November 2. The market expects the Federal Reserve to raise interest rates by 75 basis points (bp). What would really be noteworthy is if the hawks’ focus on core inflation momentum meant that there would be a fifth 75bp hike in December.
Next week’s meeting of the Federal Open Market Committee (FOMC) is widely expected to result in the FOMC’s approval of its fourth consecutive 75bp rate hike. Job creation is occurring at a rapid clip, with the number of job vacancies currently surpassing the number of unemployed Americans by a ratio of four.
The economy has returned to growth after two consecutive quarters of falling GDP.
A rate hike of 75 basis points is already factored into market prices. Though the Fed’s attitude on future rate rises will be more consequential than tomorrow’s rate hike, the latter will nonetheless affect the market for cryptocurrencies.
Bitcoin Price Prediction – How High Can BTC Go as it Pumps Past $20,000?
With a 24-hour trading volume of 44 billion, Bitcoin is currently worth $20,391. In the last seven days, Bitcoin has risen less than 5%. CoinMarketCap is currently first, with a $427 billion live market capitalization, down from $431 billion during the Asian session.
The BTC/USD pair is trading in an upward channel in the 4-hour timeframe, with support near $20,300 and resistance near $20,700. The 50-day moving average is extending support near the $20,400 level, and candles closing above this line indicate a bullish trend in Bitcoin.
The RSI and MACD continue to be bearish, indicating a minor weakness in an uptrend. As a result, a bearish breakout of the $20,300 support level could extend the selling trend until the next support level at $19,950.
On the plus side, increased demand for Bitcoin may allow it to break through the $20,800 resistance zone and reach the $21,000 level. A further bullish breakout above the $21,000 level could take BTC to $21,450.
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