Chart of the Day
The stock market rose and the dollar strengthened after the U.S. Federal Reserve signaled the imminent tapering of bond-buying and Beijing stepped in to calm Evergrande fears. The price of BTC started a decent increase after stabilizing above $42k and is currently eyeing the $44k-45k resistance zone. Volatility is expected to remain elevated before the September options expiry this Friday. Long-term holders of Bitcoin seem to be undaunted by the heavy sell-off over the last few days. However, short-term holders suffered the most losses as they adopt a risk-off stance in anticipation of broader market turmoils.
Talk of the Town
In a highly anticipated announcement on Wednesday, the U.S. Federal Reserve said that they are keeping benchmark interest rates anchored to zero, but will soon dial back some of the massive asset purchases by the central bank, though with no specific indication as to when that might happen. Fed Chair Jerome Powell said that the tapering process should be completed by mid-2022, and more members of the committee see the first rate hike happening in 2022.