ETH Volatility Analysis for Fed Interest Rate, 1st November 2023

Data Analysis

The release

Released by the Federal Open Market Committee on 1 November 2023 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 Ethereum moved

Ethereum was at $1,807.51 when the figure came out. Fifteen minutes later it was 0.5% higher, and an hour later 0.7% higher. Its high-to-low range in the hour after was 1.6% of its price, against 0.79% in the hour before.

Measured by Clometrix

Ethereum's volatility ratio was 2.23x, against 4.18x for a typical Fed Interest Rate release since 2021. Its volume ratio was 2.27x, against a typical 7.50x. 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 Ethereum more than those that held it: a median volatility ratio of 5.50x across 18, against 3.49x across 28. This one held it. Its own ratio of 2.23x compares with 3.49x for those, so it moved the price less than its circumstances would suggest.

Its record

Across 46 Fed Interest Rate releases since 2021, Ethereum's median volatility ratio is 4.18x.

What it means

The Federal Reserve's decision to hold its target range at 5.25 to 5.50 percent coincided with limited movement in Ethereum. The price stood at $1,807.51 at the 2:00 PM release, then advanced 0.5 percent within fifteen minutes and 0.7 percent within an hour, while the hourly high-to-low range reached 1.6 percent against 0.79 percent beforehand.

Clometrix recorded a volatility ratio of 2.23 times normal activity in the quarter hour of the release, below the 4.18 times median for all 46 Fed Interest Rate events since 2021 and below the 3.49 times median for the 28 prior holds. Volume expanded by a factor of 2.27 against a typical 7.50 times. The outcome registered as muted even against the record for unchanged policy.

Decisions that altered rates have produced a higher median volatility ratio of 5.50 times. This release, issued without projections or a dot plot, therefore delivered a smaller reaction than its circumstances would normally suggest. A trader reviewing the next comparable statement may expect that an unchanged target range delivered in this format tends to generate below-average volatility relative to the event's full history.

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.

ETH-USDT

Ethereum

Open

1,800.03

Close

1,834.75

24h Change

34.72 (1.89%)

24h High

1,875.00

24h Low

1,783.19

24h Volume

526,929 ETH

US Federal Reserve Interest Rate Decision

Federal Open Market Committee

1st November, 2023, 2:00PM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before1805.241808.001805.241807.520.13%0.15%219 ETH
During1807.511809.141807.011809.000.08%0.12%528 ETH
 
5 Minutes
Before1806.051808.001802.821807.520.08%0.29%1,721 ETH
During1807.511809.561803.871807.25-0.01%0.31%2,960 ETH
 
10 Minutes
Before1802.421808.951802.411807.520.28%0.36%3,838 ETH
During1807.511811.611803.871811.150.20%0.43%4,347 ETH
 
15 Minutes
Before1800.971808.951799.891807.520.36%0.50%4,805 ETH
During1807.511817.771803.871816.570.50%0.76%8,523 ETH
 
30 Minutes
Before1797.681808.951794.631807.520.54%0.79%8,136 ETH
During1807.511821.021803.871818.710.62%0.94%17,875 ETH
 
1 Hour
Before1796.981808.951794.631807.520.58%0.79%12,373 ETH
During1807.511832.721803.871820.200.70%1.57%42,404 ETH
 
2 Hours
Before1792.291808.951791.901807.520.84%0.94%26,538 ETH
During1807.511850.591803.871835.901.55%2.52%97,627 ETH
 
4 Hours
Before1801.931808.951783.191807.520.31%1.42%72,455 ETH
During1807.511857.661803.871843.421.95%2.90%181,655 ETH
 
6 Hours
Before1799.791827.581783.191807.520.43%2.43%138,398 ETH
During1807.511857.661803.871846.992.14%2.90%216,516 ETH
 
8 Hours
Before1800.031827.581792.461801.920.10%1.92%124,334 ETH
During1801.931857.661783.191843.422.25%4.01%254,111 ETH
 
12 Hours
Before1800.031827.581783.191807.520.41%2.43%196,789 ETH
During1807.511875.001803.871834.751.48%3.79%330,140 ETH

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