- Monetary particularité have tightened and cryptocurrencies have recovered from last week’s sudden negative augmentation dip.
- Analysts at Caché Research are anticipating huge volatility in the price of Bitcoin due to conflicting expectations for a price hike.
- Analysts maintain a bearish view on Bitcoin, predicting a decline in BTC if the asset fails to sustain the $18,923 level.
Cryptocurrency traders await September 21 from the Federal Open Market Committee There is a significant increase in volatility in the price of Bitcoin and altcoins. Bitcoin price suffered a 15% drop over the past seven days as cryptocurrency traders shed risk and prepared to tighten monetary policy.
Read also: XRP Price: What to Expect from the CFTC Commissioners Entretien with Brad Garlinghouse
Bitcoin price continues to fall along with rising interest rates
The price of Bitcoin fell along with the decline of stocks last week. August CPI beat expectations by 0.2%, with year-over-year augmentation at 8.3%. Bitcoin price saw a massive drop in response to the risk-off market reaction to the CPI magazine.
US ronger price série year on year
The Bitcoin price drop last week was the worst compared to previous CPI-related drops originally in 2022. The gibier reaction was the result of a mismatch of expectations and uncertainty among investors, ahead of this week’s Federal Open Market Committee assemblée. Analysts at Caché Research believe that the cryptocurrency market is pricing in a significant hike in interest rates.
Raising the odds for the September 21, 2022 Fed assemblée
Currently, the prediction is 75 bps and there is an 80% probability. However, investors are prepared for a potential 100 basis bilan rally, and this week’s decision is key to Bitcoin’s price administration. All the FOMC events have led to volatility in the price of Bitcoin and analysts are avertissement investors to prepare for a new allumage in Bitcoin volatility on September 21.
Bitcoin Volatility During FOMC Meetings
Bitcoin price tends to move in a highly correlated manner with the Nasdaq and S&P 500 indexes during aîné macro events such as the Federal Open Market Committee meetings.
Bitcoin trading strategy during FOMC statement, press conference
To help traders prepare for trades during the FOMC assemblée, researchers presented a 60-minute volatility chart and concluded the effects of the FOMC statement and press conference on bitcoin volatility.
60 Express Volatility: BTC During FOMC
Occupée day traders are the most affected by the fluctuations caused by the Federal Open Market Committee (FOMC) in the price of Bitcoin. Therefore, conflicting interest perdant hike expectations on September 21 gage exceptionally high volatility. A 100 basis bilan perdant hike is likely to have a negative short-term effect on the bitcoin price, and a lower 75 basis bilan hike will reflect positively.
Over the border time frames, daily volatility is irrelevant, however, the Fed’s medium-term outlook and bullish temps play a aîné role in determining the administration of bitcoin’s trend reversal.
BigCheds, a crypto analyst and courtier, assessed the Bitcoin price trend and indicated that BTC needs to hold above $18,923. A drop below this price level indicates a reversal of the downtrend in the price of Bitcoin.
BTC-USD price chart