ETH Volatility Analysis for Fed Interest Rate, 16th March 2022

Data Analysis

Measured by Clometrix

Ethereum's volatility ratio was 5.52x, against 4.18x for a typical Fed Interest Rate release since 2021. Its volume ratio was 14.99x, 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 $2,704.95 when the figure came out. Fifteen minutes later it was 1.82% lower, and an hour later 1.06% lower. Its high-to-low range in the hour after was 3.08% of its price, against 1.44% in the hour before.

The release

Released by the Federal Open Market Committee on 16 March 2022 at 2:00 PM EDT. The Federal Open Market Committee raised its target range for the federal funds rate by 25 basis points, to 0.25–0.50%.

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 5.52x compares with 5.50x for those, about what 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 posted a strong reaction to the March 2022 Federal Open Market Committee decision. The volatility ratio reached 5.52x against the 4.18x median recorded across 46 Fed Interest Rate releases since 2021. Volume expanded to 14.99x compared with the 7.50x typical level. The outcome aligned with the pattern that rate changes have produced larger moves than holds, which show a median volatility ratio of 5.50x versus 3.49x.

The release raised the target range by 25 basis points to 0.25-0.50 percent. Ethereum stood at $2,704.95 at the 2:00 PM EDT announcement. It fell 1.82 percent within fifteen minutes and 1.06 percent within the hour, while the high-to-low range widened to 3.08 percent from 1.44 percent in the preceding hour. These figures placed the reaction at the level Clometrix classifies as strong for this event.

This release produced a comparable 5.52x outcome, consistent with the circumstances of an actual adjustment rather than a hold, and the record supplies no basis for expecting identical magnitude on the next 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

2,628.29

Close

2,760.08

24h Change

131.79 (4.77%)

24h High

2,788.00

24h Low

2,626.13

24h Volume

569,217 ETH

US Federal Reserve Interest Rate Decision

Federal Open Market Committee

16th March, 2022, 2:00PM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before2698.612705.002698.272704.950.23%0.25%1,658 ETH
During2704.952704.962672.002684.89-0.75%1.22%7,465 ETH
 
5 Minutes
Before2696.472705.002690.822704.950.31%0.52%3,385 ETH
During2704.952716.272665.022667.20-1.42%1.89%31,758 ETH
 
10 Minutes
Before2701.132705.002690.822704.950.14%0.52%5,614 ETH
During2704.952716.272644.222655.02-1.88%2.65%51,419 ETH
 
15 Minutes
Before2704.602705.912690.822704.950.01%0.56%6,580 ETH
During2704.952716.272644.222655.72-1.85%2.65%57,204 ETH
 
30 Minutes
Before2692.852712.642690.822704.950.45%0.80%12,427 ETH
During2704.952716.272644.222653.80-1.93%2.65%69,646 ETH
 
1 Hour
Before2691.022712.642673.742704.950.51%1.43%20,540 ETH
During2704.952716.272632.912676.37-1.07%3.07%96,095 ETH
 
2 Hours
Before2704.482723.282673.742704.950.02%1.82%51,493 ETH
During2704.952756.032632.912753.171.75%4.47%153,942 ETH
 
4 Hours
Before2684.392724.072671.992704.950.76%1.91%122,831 ETH
During2704.952788.002632.912765.742.20%5.56%210,568 ETH
 
6 Hours
Before2688.112724.072662.052704.950.62%2.28%151,416 ETH
During2704.952788.002632.912773.812.48%5.56%233,110 ETH
 
8 Hours
Before2628.292703.662626.132684.392.09%2.87%132,550 ETH
During2684.392788.002632.912765.742.94%5.56%333,399 ETH
 
12 Hours
Before2628.292724.072626.132704.952.83%3.60%255,382 ETH
During2704.952788.002632.912760.082.00%5.56%313,835 ETH

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