ETH Volatility Analysis for Fed Interest Rate, 31st July 2024

Data Analysis

The release

Released by the Federal Open Market Committee on 31 July 2024 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 $3,315.40 when the figure came out. Fifteen minutes later it was 0.43% lower, and an hour later 0.07% higher. Its high-to-low range in the hour after was 1.11% of its price, against 1.25% in the hour before.

Measured by Clometrix

Ethereum's volatility ratio was 2.33x, against 4.18x for a typical Fed Interest Rate release since 2021. Its volume ratio was 3.46x, 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 2.33x 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 delivered a muted reaction to the Federal Open Market Committee decision that left the target range unchanged at 5.25 to 5.50 percent. Volatility expanded only 2.33 times normal levels in the quarter hour after the release, against the 4.18 times median recorded across 46 Fed Interest Rate events since 2021. Volume rose by a factor of 3.46, well short of the 7.50 times typical for the event. The price range actually narrowed in the hour that followed.

Holds have historically produced smaller moves than changes. Across the sample, decisions that altered the rate generated a median volatility ratio of 5.50x, while holds averaged 3.49x. This release fell below even that hold benchmark. The outcome therefore reflected both the nature of the announcement and the coin's measured sensitivity to unchanged policy.

Traders preparing for the next Federal Interest Rate release can note that the record shows holds coincide with reduced volatility for Ethereum relative to the event median. Whether the same pattern repeats will depend on the size of any surprise and the surrounding data calendar.

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

3,301.17

Close

3,185.32

24h Change

-115.85 (-3.64%)

24h High

3,350.00

24h Low

3,136.47

24h Volume

287,058 ETH

US Federal Reserve Interest Rate Decision

Federal Open Market Committee

31st July, 2024, 2:00PM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before3311.113315.403310.803315.400.13%0.14%264 ETH
During3315.403319.803294.793303.72-0.35%0.75%1,697 ETH
 
5 Minutes
Before3317.003319.793309.053315.40-0.05%0.32%1,089 ETH
During3315.403324.383294.793301.82-0.41%0.89%4,777 ETH
 
10 Minutes
Before3319.813321.793309.053315.40-0.13%0.38%1,714 ETH
During3315.403324.383294.793298.10-0.52%0.89%6,339 ETH
 
15 Minutes
Before3322.233326.793309.053315.40-0.21%0.53%3,022 ETH
During3315.403324.383290.763301.20-0.43%1.01%7,489 ETH
 
30 Minutes
Before3305.513326.793303.603315.400.30%0.70%5,506 ETH
During3315.403324.383287.603291.27-0.73%1.11%9,929 ETH
 
1 Hour
Before3290.433326.793285.253315.400.75%1.25%7,866 ETH
During3315.403324.383287.603317.790.07%1.11%14,605 ETH
 
2 Hours
Before3302.353326.793282.763315.400.39%1.32%15,468 ETH
During3315.403324.383245.003266.19-1.51%2.39%36,104 ETH
 
4 Hours
Before3331.603340.553282.763315.40-0.49%1.73%46,398 ETH
During3315.403324.383213.753238.89-2.36%3.33%71,790 ETH
 
6 Hours
Before3322.883350.003282.763315.40-0.23%2.01%68,676 ETH
During3315.403324.383213.753232.74-2.56%3.33%82,222 ETH
 
8 Hours
Before3301.173350.003298.263331.600.91%1.54%69,721 ETH
During3331.603340.553213.753238.89-2.86%3.80%118,188 ETH
 
12 Hours
Before3301.173350.003282.763315.400.43%2.01%116,119 ETH
During3315.403324.383136.473185.32-4.08%5.65%170,939 ETH

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