ETH Volatility Analysis for Fed Interest Rate, 16th September 2020

Data Analysis

The release

Released by the Federal Open Market Committee on 16 September 2020 at 2:00 PM EDT. The Federal Open Market Committee held its target range for the federal funds rate at 0.00–0.25%.

How Ethereum moved

Ethereum was at $369.44 when the figure came out. Fifteen minutes later it was 1.04% lower, and an hour later 0.82% lower. Its high-to-low range in the hour after was 1.64% of its price, against 0.88% in the hour before.

Measured by Clometrix

Ethereum's volatility ratio was 2.99x, against 4.18x for a typical Fed Interest Rate release since 2021. Its volume ratio was 2.15x, against a typical 7.50x. That is about what this release usually does. 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 2.99x 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.

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.