In a significant development on Wednesday, Bitcoin (BTC) experienced a notable 5% surge, reflecting the growing anticipation surrounding the Federal Open Market Committee (FOMC) announcements and the Federal Fund Rate. This rise underscores the world's leading cryptocurrency's resilience and its evolving relationship with global economic indicators.
The Bitcoin market is currently exercising caution ahead of the US Federal Reserve's decision on interest rates, scheduled to be announced on Wednesday. The FOMC meeting, which began Tuesday, is expected to maintain the interest rates at their current level. However, strong economic data in the United States and ongoing inflation concerns have led some to anticipate a 0.25% rate hike by the end of the year.
Despite the uncertainty, the crypto markets have shown consistent growth for another day. The latest data indicates that the global crypto market cap has risen by 1.3%, inching ever closer to the significant $1.12 trillion milestone.
Nomura, a leading Japanese investment bank, recently launched a Bitcoin-focused fund targeting institutional investors. The fund, operated by Nomura's digital asset subsidiary Laser Digital, focuses only on Bitcoin as a long-term investment. It uses Komainu, a joint venture between Nomura, Ledger, and CoinShares, to enhance security. The launch followed Laser Digital and Komainu's acquisition of licenses in Dubai.
The fund operates under the Laser Digital Funds Segregated Portfolio Company (SPC) framework recognized and registered in the Cayman Islands, providing investors with protection against unnecessary risks. Sebastien Guglietta, Head of Laser Digital Asset Management, believes that Bitcoin plays a crucial role in the long-term transformation of the economy.
After surging past the $26,800 resistance level, Bitcoin stabilized above the $27,000 benchmark. However, resistance remains around $27,500. If BTC surpasses this level, a potential rally could lead to the $29,500 or even $30,000 zones. Conversely, if BTC fails to surpass $27,500, a correction may ensue with supports at $27,050 and $26,800. Breaching the latter might push the price towards $26,200.
The market sentiment is hovering between neutral and bullish as investors eagerly anticipate the decision of the US Federal Reserve on federal interest rates. The Bitcoin adoption fund for institutional investors launched by Nomura is likely to increase demand for BTC, potentially leading to upward price pressure due to greater investment interest.
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