ETH Volatility Analysis for Fed Interest Rate, 22nd March 2023

Data Analysis

Measured by Clometrix

Ethereum's volatility ratio was 7.67x, against 4.18x for a typical Fed Interest Rate release since 2021. Its volume ratio was 15.47x, against a typical 7.50x. That is a strong 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.

How Ethereum moved

Ethereum was at $1,787.19 when the figure came out. Fifteen minutes later it was 0.33% lower, and an hour later 0.83% lower. Its high-to-low range in the hour after was 3.36% of its price, against 1.53% in the hour before.

The release

Released by the Federal Open Market Committee on 22 March 2023 at 2:00 PM EDT. The Federal Open Market Committee raised its target range for the federal funds rate by 25 basis points, to 4.75–5.00%.

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 changed the rate. Its own ratio of 7.67x compares with 5.50x for those, so it moved the price more than its circumstances alone would suggest.

Its record

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

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.