The market is struggling to find direction, possibly due to caution ahead of the end of the Fed gathering.
Inflation fears have also spread to the stock market and could soon translate into a higher consumer price index, as per a new report from Bank of America.
Bitcoin may face selling pressure if the Fed turns hawkish and signals an early tapering of stimulus.
“Rather than follow the lead of the Bank of Canada , which last week began cutting back on bond purchases and signaled a quicker time frame for the next interest rate increase, the Fed will most likely take an approach similar to the one the European Central Bank conveyed last Thursday.
The dollar index, which gauges the greenback’s value against major fiat currencies, has dropped by 2.3% this month despite signs the U.S.
Bitcoin’s recovery rally may pick up steam if the Fed maintains its easy-money policy, as is expected.
However, Stack Funds’ Matthew Dibb said he expects price consolidation even if the Fed maintains its current course.
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