Bitcoin (BTC) sought cues from the United States Federal Reserve on Dec. 14 every bit markets waited anxiously for news on policy.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC higher lows remain safe

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD continuing in a range around $47,000 every bit Wall St. opened on Dec. 15.

The pair had hitting local highs of $48,785 on Bitstamp overnight but was down 3% at the fourth dimension of writing ahead of a key Fed meeting.

The Federal Open Market Committee (FOMC) will brainstorm discussions at ii pm Eastern Time, with expectations focusing on interest rates, inflation and asset purchase tapering.

A hawkish stance is foremost in analysts' minds, this potentially causing pain for risk asset holders in the short term should the Fed's approach become less liberal.

"Markets are forward-looking. Crypto is even more and so because it'southward not nether anyone's control. It'due south the only free market left in the world," popular crypto trader Pentoshi summarized in a Twitter discussion on the issue.

"The Fed is still calculation to it'south balance sheet merely at a decreased rate. Smart money prepped last month. Slow money this calendar week."

Traditional markets were similarly directionless, with the S&P 500 downwards 0.22% on the 24-hour interval.

As Cointelegraph reported, with Bitcoin underperforming compared to what many assumed Q4 2022 would look like, a consensus is edifice that 2022 volition grade the marketplace cycle peak for both BTC and altcoins.

"The panic & bearish sentiment towards BTC is extreme right now. But there'due south nada farthermost nearly this -38% retrace," fellow trader and analyst Rekt Capital reiterated.

"Over the years, BTC has retraced 30–40% many times in Bull Markets. In fact, $BTC retraced -53% this past May -38% isn't extreme."

Rekt Uppercase previously noted that a close above $42,300 still represents a higher low germination for BTC/USD.

Fright is all effectually

On altcoin markets, the mood was more pronounced in its skew to the downside.

Related: Bitcoin sheds 'dumb money' as retail buys about BTC since March 2022 crash

Out of the elevation x cryptocurrencies by marketplace cap, all except Solana (SOL) were mildly in the red on daily timeframes.

Dogecoin (DOGE), fresh from its Tesla publicity, managed to secure around half of its 25% gains.

"Right now, people are easily selling their numberless equally they are convinced a huge driblet will happen this night," Cointelegraph correspondent Michaël van de Poppe argued.

The Crypto Fearfulness & Greed Index stood at 28/100, up from 21/100 on Tuesday, mark a transition from "farthermost fright" to "fear" inside its own range reflective of Bitcoin'southward contempo moves.

Crypto Fearfulness & Greed Index. Source: Alternative.me