Bitcoin Cash price crashed sharply as investors waited for the upcoming FOMC minutes. The BCH token dropped to a low of $135, which was much lower than this month’s high of $147.90. Its market cap has dropped to over $2.6 billion.
FOMC minutes ahead
Bitcoin Cash and other cryptocurrencies fell sharply as the Fed prepares to publish the minutes of its July meeting. In that meeting, the bank decided to hike interest rates by 0.75% for the second consecutive month. As a result, the Fed has raised rates by 225 basis points this year.
These minutes will provide more color about what the FOMC officials deliberated on in that meeting. In most cases, they usually offer more information on what the bank will do in the next meeting. Economists expect that the minutes will provide a hint that the bank will hike by either 0.50% or 0.75% in the coming meeting.
A lot has changed since the Fed meeting in July. For one, the Bureau of Labor Statistics published encouraging inflation and jobs data. Numbers given earlier this month showed the economy created more than 528k jobs in July, while the unemployment rate fell to 3.5%.
Additional data showed that the country’s inflation dropped from 9.1% in June to 8.7% in July of this year. Still, the figure is above the Fed’s target of 2.0%. In addition to cryptocurrencies, stocks also declined in the futures market. Dow Jones dropped by 240 points while Nasdaq 100 fell by 150 points.
The four-hour chart is showing a sharp decline in BCH price ahead of the upcoming FOMC minutes. As it dropped, the coin managed to test the bottom of the ascending channel shown in green. It also moved below the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) edged lower.
Therefore, Bitcoin Cash price will likely resume the bullish trend as buyers target the upper side of the ascending channel. This price is at $150. A drop below the channel will signal that bears have prevailed and push the coin to a low of $130.
