ETH Volatility Analysis for Fed Interest Rate, 20th September 2023

Data Analysis

The release

Released by the Federal Open Market Committee on 20 September 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 $1,628.65 when the figure came out. Fifteen minutes later it was 0.14% higher, and an hour later 0.21% higher. Its high-to-low range in the hour after was 0.97% of its price, against 0.41% in the hour before.

Measured by Clometrix

Ethereum's volatility ratio was 2.14x, against 4.18x for a typical Fed Interest Rate release since 2021. Its volume ratio was 3.89x, 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 2.14x 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

Ethereum showed a muted reaction to the Federal Reserve's September 2023 decision. The volatility ratio came in at 2.14x against the event's long-term median of 4.18x, while volume rose only 3.89x against a typical 7.50x. Price moved 0.14 percent higher in the first fifteen minutes and 0.21 percent after an hour, with the hourly range expanding to 0.97 percent from 0.41 percent beforehand.

The outcome aligned with the pattern for rate-hold decisions. Since 2021, holds have produced a median volatility ratio of 3.49x across twenty-eight releases, compared with 5.50x when the target range changed. This release's 2.14x figure fell below even that hold-specific benchmark.

Traders watching future meetings can note that the combination of no rate change and no accompanying surprise produced below-average movement for Ethereum. The record shows holds have consistently generated smaller reactions than changes, without establishing a fixed magnitude for any single upcoming release.

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

1,634.22

Close

1,623.86

24h Change

-10.36 (-0.64%)

24h High

1,640.79

24h Low

1,604.51

24h Volume

236,104 ETH

US Federal Reserve Interest Rate Decision

Federal Open Market Committee

20th September, 2023, 2:00PM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before1630.321630.321628.641628.65-0.10%0.10%194 ETH
During1628.651630.801625.481626.36-0.14%0.33%2,043 ETH
 
5 Minutes
Before1628.751630.651628.641628.65-0.01%0.12%660 ETH
During1628.651631.501625.001629.180.03%0.40%4,430 ETH
 
10 Minutes
Before1628.601630.651628.501628.650.00%0.13%1,275 ETH
During1628.651631.501625.001630.040.09%0.40%5,461 ETH
 
15 Minutes
Before1628.201630.651628.091628.650.03%0.16%1,559 ETH
During1628.651631.691625.001630.850.13%0.41%6,423 ETH
 
30 Minutes
Before1631.631632.431625.811628.65-0.18%0.41%3,730 ETH
During1628.651635.141625.001632.890.26%0.62%9,148 ETH
 
1 Hour
Before1627.521632.531625.811628.650.07%0.41%7,715 ETH
During1628.651640.791625.001632.020.21%0.96%19,033 ETH
 
2 Hours
Before1629.291632.531625.811628.65-0.04%0.41%15,413 ETH
During1628.651640.791604.511616.16-0.77%2.21%49,990 ETH
 
4 Hours
Before1631.161634.391624.631628.65-0.15%0.60%29,509 ETH
During1628.651640.791604.511625.93-0.17%2.21%63,491 ETH
 
6 Hours
Before1629.701634.391620.681628.65-0.06%0.84%53,668 ETH
During1628.651640.791604.511622.26-0.39%2.21%72,126 ETH
 
8 Hours
Before1634.221638.511618.481631.16-0.19%1.22%96,157 ETH
During1631.161640.791604.511625.93-0.32%2.21%93,000 ETH
 
12 Hours
Before1634.221638.511618.481628.65-0.34%1.22%125,666 ETH
During1628.651640.791604.511623.86-0.29%2.21%110,438 ETH

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