Impact of FED policy on Bitcoin!

The price of Bitcoin (BTC) started September on a negative note, where it once again fell below $26,000 on Friday. However, a critical indicator in the chain reveals increasing buying pressure from American "whales" investors.

The US central bank will announce new interest rates on September 19. Just 10 days before critical meeting on monetary policy, and it seems that institutional companies based in The US is accumulating Bitcoin (BTC) at the last minute. Will this cause an increase in prices in the following days?

As the Fed’s next meeting fast approaches, a vital indicator on the chain is showing yes US corporate investors are increasing their buying pressure. Coinbase Premium Index CryptoQuant shows Bitcoin activity on the Coinbase Pro and Binance spot markets. While Binance dominates the global single spot market, Coinbase Pro mostly dominated by US-based institutional firms and high-net-worth investors.

Therefore, positive values of the Premium Index indicate an increase in buying pressure on Coinbase by US investors. The chart shows that the Coinbase Premium Index reached positive values for the first time this month.

However, the last time the Coinbase index crossed above 0.80 was around March 2023. This was followed by an increase in price towards a peak of $30,500 this year. It is still uncertain whether the Coinbase Premium Index will continue to rise. Such a situation can increase the confidence of individual investors and encourage the price to rise before the next meeting Fed. This optimistic view is further strengthened by the liquidity that flows into the Bitcoin spot markets. According to Cryptoquant, Bitcoin spot trading volume it has been rising continuously since September 2 and has almost doubled.

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