Fed Funds rate raised 0.25%, how will BTC price react?

Panzersin

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Quote from: Rizky Aditya on December 17, 2015, 05:11:09 PM

Quote from: Amph on December 17, 2015, 06:25:56 AM

uh, btc not moving you say? tso you missed the last pump that led as again at the last peak we reached previously, we are at 460 right now, when we were at 380, how this si not moving, is beyond me....

Yeah.... the Bitcoin price is moving. Well, at the moment it is stable around $450. When halving comes, the price of Bitcoin will definitely be moving.

The Bitcoin price has dropped to $350 now. It seems that the performance of bitcoin is similar to the stock market now. It just drops more.

JoyJoines

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Quote from: bitsmichel on December 16, 2015, 03:35:16 PM

Quote

So far, BTC price not moving.

I think Feds don't control bitcoin price which is why it didn't move.

Rizky Aditya

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Quote from: Amph on December 17, 2015, 06:25:56 AM

uh, btc not moving you say? tso you missed the last pump that led as again at the last peak we reached previously, we are at 460 right now, when we were at 380, how this si not moving, is beyond me....

Yeah.... the Bitcoin price is moving. Well, at the moment it is stable around $450. When halving comes, the price of Bitcoin will definitely be moving.

MaritiJames3

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I don't think this will have an effect on bitcoin itself. Not directly at least, I think we might have to wait a bit for anything to change though.
It might have an effect later on.

Panzersin

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Quote from: ?? on ??

Every asset should deflate against the US dollar (other currencies, precious metals, commodities and probably BTC also).

In long term, every asset will deflate against bitcoin. That is due to the limited supply of bitcoin. The supply of USD is unlimited.

Magnr

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Quote from: OROBTC on December 16, 2015, 03:03:29 PM

...

So far, BTC price not moving.

Silver up nearly 4%.

Platinum up about 2.4%.

WTIC oil down to approx. $35.78 (that's very low).

Dow and S&P500 faltered, but now up over 1% (3:02 PM US ET).

Most other commodities that I have looked at are not moving much, at least yet.

* * *

I am curious to read opinions on how BTC prices may react, this is the first time in "modern BTC history" that Fed Funds rates have been raised.

In finance the way they would question this relationship is through Beta correlation. The numbers would then do the talking for you.

https://en.wikipedia.org/wiki/Beta_(finance)

In our opinion, a corresponding price increase in Bitcoin reflects speculative activity (perhaps based off news) as opposed to any single specific announcement. There is a greater Beta to Bitcoin's price when you look at press coverage mentions of Bitcoin.

NorrisK

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The 0.25% is probably too small to have much impact, but it does boost the trust of the investors in the American economy.
If they keep increasing it in the following years, than the impact may be felt much more.

Amph

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uh, btc not moving you say? so you missed the last pump that led as again at the last peak we reached previously, we are at 460 right now, when we were at 380, how this si not moving, is beyond me....

Blue_Tiger73

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Quote from: randy8777 on December 16, 2015, 04:22:03 PM

i don't think this will have any effect on the bitcoin price. it might get affected when institutional traders are in bitcoin. these are the kind of traders that do find this news important. regular bitcoin traders don't care that much it seems.

I really doubt that this will make any difference to the Bitcoin price, fed doesn't control the Bitcoin price and never will. We should be seeing a rise in Bitcoin price as soon as halving comes.

Yakamoto

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The thing with Bitcoin is that it can go anywhere at this point due to an interest rate change. Chances are it will go up, as some people will see Bitcoin as a way of retaining value with their assets, and I can't think of any reasons as to why it would go down at a time like this, for this specific event.

The thing is we don't have many charts to give much information on what Bitcoin will do when things like this happen, since we don't have any refernce points in the past that show the ecosystem as it is now.

Pab

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Will not,why has to react,more important in FED communicate was that QEwill continue at same level
So markets happy but it is not enough to drive stocks to new high

DrLove2048

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There is not much movement because it was bound to happen eventually and it was 'priced in'. People knew if it wasn't this time it would happen soon. I also don't think it's really tied to it anyway

botany

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Quote from: 7788bitcoin on December 16, 2015, 08:28:15 PM

0.25% is just a beginning. I think more will come. In short term bitcoin price will continue to increase until the halving happens.

Yes, 0.25% is just the beginning.
The jury is still out on whether the Fed's policy statement was dovish or hawkish.
But all market participants expect at least 2 more hikes over the next year.

7788bitcoin

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0.25% is just a beginning. I think more will come. In short term bitcoin price will continue to increase until the halving happens.

The Sceptical Chymist

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Top Crypto Casino

Quote from: bitsmichel on December 16, 2015, 03:35:16 PM

Quote

So far, BTC price not moving.

I think Feds don't control bitcoin price which is why it didn't move.

That's a silly argument IMAO--of course they don't control bitcoin, but investors do, and some of those investors are big players and they do take interest rates into consideration. However I kind of thought that the price wouldn't react much. The market is pretty thin compared to the stock and commodities markets.

botany

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This 0.25% hike was in line with market expectations. All markets have already priced in this hike.
If the fed had not raised the rates, then markets would have reacted wildly,
As of now, it is just business as usual.

West man

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No correlation to other markets so of course no movement based on these other market increases.

unholycactus

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Quote from: OROBTC on December 16, 2015, 03:03:29 PM

---snip---

this is the first time in "modern BTC history" that Fed Funds rates have been raised.

What do you mean? Last raise was before Bitcoin was even designed.

As for what I think, BTC exchange rate isn't really affected by things like these. Unless we start seeing negative rates.

Meuh6879

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Quote from: OROBTC on December 16, 2015, 03:03:29 PM

...

So far, BTC price not moving.

yet ... but Bitcoin network is smart, it moves only after the event.
because people are slow, too.

oblomov

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There does not appear to be a strong relationship between BTC/USD and other asset classes, so the response in BTC will be minimal.

If anything, it will encourage the development of relatively safe interest-bearing instruments denominated in BTC.

Enjorlas

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Quote from: phreaky on December 16, 2015, 04:43:57 PM

It wont directly affect BTC price. However, It will affect global economy which it can trigger a economic crisis in 1 year. Then we will see a positive impact of crisis on BTC price due to FED interest rate increase.

Most likley a crisis would have a negative impact on price, not positive.

OROBTC

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...

Historical chart (back to 1990) of Fed Funds rates, from Zero Hedge:

Note dark grey marks recessions.

Link in case image does not load:

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/12/fed%20funds%20chart.jpg

Hey! The Fed could always go to "NIRP" (negative interest rates) should the economy or markets crater...

AltcoinReserveSystem

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Fed isn't controlling BTC price. However, everything could be possible in future.

phreaky

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It wont directly affect BTC price. However, It will affect global economy which it can trigger a economic crisis in 1 year.
Then we will see a positive impact of crisis on BTC price due to FED interest rate increase.

randy8777

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i don't think this will have any effect on the bitcoin price. it might get affected when institutional traders are in bitcoin. these are the kind of traders that do find this news important. regular bitcoin traders don't care that much it seems.

bitsmichel

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Quote

So far, BTC price not moving.

I think Feds don't control bitcoin price which is why it didn't move.

OROBTC

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...

So far, BTC price not moving.

Silver up nearly 4%.

Platinum up about 2.4%.

WTIC oil down to approx. $35.78 (that's very low).

Dow and S&P500 faltered, but now up over 1% (3:02 PM US ET).

Most other commodities that I have looked at are not moving much, at least yet.

* * *

I am curious to read opinions on how BTC prices may react, this is the first time in "modern BTC history" that Fed Funds rates have been raised.

Topic: Fed Funds rate raised 0.25%, how will BTC price react? (Read 1567 times)