BTC Volatility Analysis for Fed Interest Rate, 3rd May 2023

Data Analysis

The release

Released by the Federal Open Market Committee on 3 May 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 5.00–5.25%.

How Bitcoin moved

Bitcoin was at $28,576.70 when the figure came out. Fifteen minutes later it was 0.14% higher, and an hour later 0.46% lower. Its high-to-low range in the hour after was 2.03% of its price, against 1.4% in the hour before.

Measured by Clometrix

Bitcoin's volatility ratio was 3.47x, against 4.29x for a typical Fed Interest Rate release since 2021. Its volume ratio was 5.72x, against a typical 5.81x. 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 Bitcoin more than those that held it: a median volatility ratio of 5.37x across 18, against 3.31x across 28. This one changed the rate. Its own ratio of 3.47x compares with 5.37x 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 showed an ordinary reaction to the 3 May 2023 Federal Open Market Committee decision that lifted the target range by 25 basis points to 5.00-5.25 percent. The price stood at $28,576.70 at the 2:00 PM release. It rose 0.14 percent in the first fifteen minutes and finished 0.46 percent lower after one hour, with a high-to-low range of 2.03 percent against 1.4 percent beforehand.

Clometrix recorded a volatility ratio of 3.47x for Bitcoin in the quarter hour of the statement, below the 4.29x median across 46 Fed Interest Rate releases since 2021. Volume reached 5.72x against a typical 5.81x. The outcome sits below the 5.37x median volatility seen when the committee has changed rates in the same period.

This release therefore produced less movement than releases that altered the target range normally generate. The subdued response arrived alongside a quarter-hour volatility reading well inside the event's longer-term central tendency.

Traders watching the next comparable announcement may note that a rate change alone does not guarantee an outsized move; the magnitude of the reaction can vary even when policy shifts.

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

28,477.20

Close

29,203.90

24h Change

726.70 (2.49%)

24h High

29,266.66

24h Low

28,113.69

24h Volume

65,678 BTC

US Federal Reserve Interest Rate Decision

Federal Open Market Committee

3rd May, 2023, 2:00PM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before28563.9928582.1928508.8028576.700.04%0.26%97 BTC
During28576.7028800.0028530.9128599.380.08%0.93%700 BTC
 
5 Minutes
Before28636.7528646.0328434.0928576.70-0.21%0.74%680 BTC
During28576.7028800.0028486.4428563.70-0.05%1.09%1,785 BTC
 
10 Minutes
Before28633.4228664.2728434.0928576.70-0.20%0.80%884 BTC
During28576.7028800.0028486.4428556.75-0.07%1.09%2,365 BTC
 
15 Minutes
Before28722.8028748.2228434.0928576.70-0.51%1.09%1,357 BTC
During28576.7028800.0028486.4428615.840.14%1.09%2,794 BTC
 
30 Minutes
Before28577.5028780.0028434.0928576.700.00%1.20%2,699 BTC
During28576.7028800.0028486.4428517.92-0.21%1.09%3,874 BTC
 
1 Hour
Before28476.9628780.0028380.0028576.700.35%1.39%4,680 BTC
During28576.7028800.0028218.6528444.29-0.47%2.02%8,653 BTC
 
2 Hours
Before28311.5228780.0028247.4128576.700.93%1.85%7,063 BTC
During28576.7028800.0028211.0828322.98-0.90%2.04%12,054 BTC
 
4 Hours
Before28373.5528780.0028113.6928576.700.71%2.32%11,801 BTC
During28576.7029057.6228211.0828923.521.20%2.91%19,681 BTC
 
6 Hours
Before28543.7328780.0028113.6928576.700.12%2.32%20,745 BTC
During28576.7029266.6628211.0829026.161.55%3.61%26,405 BTC
 
8 Hours
Before28477.2028767.9328128.3128373.55-0.37%2.22%18,527 BTC
During28373.5529057.6228113.6928923.521.90%3.25%31,482 BTC
 
12 Hours
Before28477.2028780.0028113.6928576.700.35%2.32%30,328 BTC
During28576.7029266.6628211.0829203.902.15%3.61%35,350 BTC

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