BTC Volatility Analysis for Fed Interest Rate, 27th January 2021

Data Analysis

The release

Released by the Federal Open Market Committee on 27 January 2021 at 2:00 PM EST. The Federal Open Market Committee held its target range for the federal funds rate at 0.00–0.25%.

How Bitcoin moved

Bitcoin was at $29,719.93 when the figure came out. Fifteen minutes later it was 3.07% higher, and an hour later 3.43% higher. Its high-to-low range in the hour after was 3.83% of its price, against 3.49% in the hour before.

Measured by Clometrix

Bitcoin's volatility ratio was 3.16x, against 4.29x for a typical Fed Interest Rate release since 2021. Its volume ratio was 2.50x, 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 held it. Its own ratio of 3.16x compares with 3.31x for those, about what 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's volatility ratio reached 3.16x in the quarter hour after the statement, below the 4.29x median recorded across 46 Fed Interest Rate releases since 2021, while the volume ratio stood at 2.50x against a typical 5.81x. Price rose 3.07 percent in the first fifteen minutes and 3.43 percent within the hour, with an intraday range of 3.83 percent.

The limited response aligned with the pattern observed when the committee elects to hold rates steady. Across 28 such instances since 2021 the median volatility ratio has been 3.31x, compared with 5.37x on the 18 occasions when the target range was adjusted. This release’s 3.16x outcome therefore sat squarely within the range that normally accompanies unchanged policy.

Traders reviewing the record can note that releases of this type have produced contained price action more often than not. The median move one hour after any Fed Interest Rate statement has been 1 percent either side of the prior level, and the January 2021 outcome remained consistent with that baseline.

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

31,669.98

Close

31,564.58

24h Change

-105.40 (-0.33%)

24h High

31,890.19

24h Low

29,241.72

24h Volume

103,186 BTC

US Federal Reserve Interest Rate Decision

Federal Open Market Committee

27th January, 2021, 2:00PM Timezone: America/New York

Chart Data from Binance

Observations

Time Open High Low Close Change Amplitude Volume
 
1 Minute
Before29775.2429798.6229700.0029709.79-0.22%0.33%72 BTC
During29719.9329958.7829712.9429893.590.58%0.82%192 BTC
 
5 Minutes
Before29718.1629798.6229667.3829709.79-0.03%0.44%289 BTC
During29719.9330463.5129712.9430336.582.03%2.46%980 BTC
 
10 Minutes
Before29770.1429798.6229579.9629709.79-0.20%0.73%773 BTC
During29719.9330473.6429712.9430302.251.92%2.50%1,625 BTC
 
15 Minutes
Before29672.1929830.3029500.0029709.790.13%1.11%1,585 BTC
During29719.9330770.0029712.9430631.432.98%3.44%2,324 BTC
 
30 Minutes
Before30088.3930175.0929500.0029709.79-1.27%2.24%2,988 BTC
During29719.9330825.0029712.9430595.032.86%3.61%3,577 BTC
 
1 Hour
Before30508.5130537.5029500.0029709.79-2.69%3.40%4,510 BTC
During29719.9330850.0029712.9430740.333.32%3.69%5,615 BTC
 
2 Hours
Before30529.5630845.8129500.0029709.79-2.76%4.36%8,547 BTC
During29719.9331556.0029712.9431520.205.71%5.84%11,549 BTC
 
4 Hours
Before29573.9830948.0029390.0029709.790.46%5.03%20,435 BTC
During29719.9331649.9929712.9430519.932.62%6.12%17,516 BTC
 
6 Hours
Before30759.0231057.0029241.7229709.79-3.53%5.84%34,448 BTC
During29719.9331649.9929712.9430671.863.10%6.12%24,846 BTC
 
8 Hours
Before31669.9831890.1929241.7229573.15-7.09%8.30%37,943 BTC
During29573.9831649.9929390.0030519.933.10%7.14%37,951 BTC
 
12 Hours
Before31669.9831890.1929241.7229709.79-6.60%8.30%58,378 BTC
During29719.9331876.6329712.9431564.585.84%6.79%44,808 BTC

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