BTC Volatility Analysis for Fed Interest Rate, 1st May 2024

Data Analysis

The release

Released by the Federal Open Market Committee on 1 May 2024 at 2:00 PM EDT. The Federal Open Market Committee held its target range for the federal funds rate at 5.25–5.50%.

How Bitcoin moved

Bitcoin was at $57,424.64 when the figure came out. Fifteen minutes later it was 0.76% higher, and an hour later 2.59% higher. Its high-to-low range in the hour after was 3.72% of its price, against 1.87% in the hour before.

Measured by Clometrix

Bitcoin's volatility ratio was 2.72x, against 4.29x for a typical Fed Interest Rate release since 2021. Its volume ratio was 4.13x, against a typical 5.81x. That is a muted reaction by this release's own standard. Both compare the quarter hour of the release with an ordinary quarter hour that same day, where 1.00x is no change: volatility is how far the price ranged, volume how much traded.

What made it matter

Since 2021, Fed decisions that changed the rate have moved Bitcoin more than those that held it: a median volatility ratio of 5.37x across 18, against 3.31x across 28. This one held it. Its own ratio of 2.72x compares with 3.31x for those, so it moved the price less than its circumstances would suggest.

Its record

Across 46 Fed Interest Rate releases since 2021, Bitcoin's median volatility ratio is 4.29x.

What it means

Bitcoin registered a muted reaction to the Federal Reserve's decision to hold the target range at 5.25 to 5.50 percent. The price stood at $57,424.64 at the 2:00 PM release, then advanced 0.76 percent within fifteen minutes and 2.59 percent within one hour. Its high-to-low range expanded to 3.72 percent of price after the announcement from 1.87 percent before it. Clometrix recorded a volatility ratio of 2.72x against the 4.29x median for Fed Interest Rate releases since 2021, together with a volume ratio of 4.13x against the typical 5.81x.

Hold decisions have produced lower median volatility than changes since 2021, at 3.31x across twenty-eight instances versus 5.37x across eighteen changes. This release's 2.72x volatility ratio fell below even the hold median, confirming the subdued character of the move. The overall record across forty-six releases shows a 4.29x median volatility ratio for Bitcoin. Traders may observe that unchanged rates have coincided with smaller price ranges in Bitcoin than the broader event history would indicate.

About Federal Reserve Interest Rate Decision

The Federal Open Market Committee (FOMC) has eight regularly scheduled meetings each year, but they can meet more often if the need should arise. The meetings are not held in public and are therefore the subject of much speculation on Wall Street, as analysts attempt to predict whether the Fed will tighten or loosen the money supply with a resulting increase or decrease in interest rates.

Disclaimer

The data analysis, forecasted results and projections provided herein are based on historical price action and market trends. While every effort has been made to ensure the accuracy of the information, these predictions are speculative and should not be considered a guarantee of future performance. Market conditions can change rapidly, and past performance is not indicative of future results. Trading and investing involve significant risk, and you should conduct your own research and consult with a licensed financial advisor before making any investment decisions. We do not assume any liability for any losses that may result from reliance on this information.

BTC-USDT

Bitcoin

Open

60,049.99

Close

57,484.57

24h Change

-2565.42 (-4.46%)

24h High

60,113.24

24h Low

56,552.82

24h Volume

85,868 BTC

US Federal Reserve Interest Rate Decision

Federal Open Market Committee

1st May, 2024, 2:00PM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before57526.0057531.1057419.2957424.65-0.18%0.19%53 BTC
During57424.6457594.3457331.1057534.000.19%0.46%182 BTC
 
5 Minutes
Before57594.3457679.1857419.2957424.65-0.30%0.45%212 BTC
During57424.6458103.7757331.1058063.981.10%1.33%845 BTC
 
10 Minutes
Before57324.0857700.8657300.0057424.650.18%0.69%586 BTC
During57424.6458181.9057331.1058032.001.05%1.46%1,857 BTC
 
15 Minutes
Before57198.9157700.8657162.0157424.650.39%0.93%716 BTC
During57424.6458181.9057331.1057861.350.75%1.46%2,342 BTC
 
30 Minutes
Before57184.7457700.8657151.1057424.650.42%0.95%1,116 BTC
During57424.6458181.9057331.1058003.991.00%1.46%3,246 BTC
 
1 Hour
Before57044.0057700.8656625.0957424.650.66%1.86%2,104 BTC
During57424.6459468.0057331.1058913.992.53%3.59%8,929 BTC
 
2 Hours
Before56886.0057700.8656625.0957424.650.94%1.86%4,385 BTC
During57424.6459468.0056897.2756954.47-0.83%4.32%16,123 BTC
 
4 Hours
Before57301.2957700.8656625.0957424.650.21%1.86%10,238 BTC
During57424.6459468.0056760.0257909.030.84%4.55%20,116 BTC
 
6 Hours
Before57898.4658275.8756625.0957424.65-0.83%2.83%16,072 BTC
During57424.6459468.0056760.0258364.971.61%4.55%24,220 BTC
 
8 Hours
Before60049.9960113.2456552.8257301.29-4.80%5.92%38,449 BTC
During57301.2959468.0056625.0957909.031.05%4.78%30,353 BTC
 
12 Hours
Before60049.9960113.2456552.8257424.65-4.57%5.92%48,687 BTC
During57424.6459468.0056760.0257484.570.10%4.55%37,181 BTC

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