Bitcoin price at a ‘hinge point’ as traders await Fed decision today

Bitcoin climbed supra $117,000 during the aboriginal trading hours today, its strongest level since aboriginal August, arsenic traders positioned astir the Federal Reserve’s involvement complaint decision.

The result of the Federal Open Market Committee (FOMC) meeting, owed aboriginal today, volition specify the hazard scenery for the remainder of the year.

Market expectations of an easier monetary argumentation person fueled the latest momentum.

According to a Bitwise report, softer US ostentation readings person pushed futures markets to afloat terms successful a quarter-point complaint cut, with likelihood adjacent 93% that cumulative cuts volition scope 75 ground points earlier year-end.

As a result, the imaginable of looser conditions has energized crypto markets, with Bitwise highlighting “a instrumentality to somewhat bullish sentiment” arsenic hazard appetite successful the marketplace becomes much evident.

This presumption corroborates that of blockchain investigation level Santiment, which noted that bullish optimism has surged connected societal channels similar X.

Santiment noted that bullish commentary present makes up 64% of each crypto discussions—its highest “crowd greed” speechmaking since July.

Bitcoin Bullish Social Media Sentiments (Source: Santiment)

Moreover, stablecoin flows into exchanges besides awesome that existent superior is connected standby to capitalize connected the marketplace move.

CryptoQuant expert Axel Adler reported that astir $9 cardinal worthy of stablecoins person entered exchanges wrong the past 36 hours up of the impending Fed meeting. This suggests that traders are prepared to enactment rapidly connected the announcement.

Stablecoins Exchange Flows (Source: CryptoQuant)

Caution ahead

However, contempt the existent bullish positions, Santiment warned that the markets often determination against retail consensus, meaning that excessive assurance could exposure traders if the Fed makes a astonishing decision.

Blockchain investigation steadfast Glassnode besides pointed retired that the derivatives markets bespeak the aforesaid hostility arsenic options traders are actively bracing for terms swings.

According to the firm:

“Options traders are rapidly buying options to hedge oregon presumption for a volatility spike, reflecting the market’s uncertainty and anticipation of a large move.”

Bitcoin Options Trader Market Positioning Ahead of FOMC (Source: Glassnode)

Considering this, Timothy Misir, caput of probe astatine BRN, told CryptoSlate that “Bitcoin stands astatine a hinge point.”

According to him:

“A sustained propulsion done $116,300 and $117,000 connected Fed-driven liquidity could unlock higher bands toward $120,000. But the setup is delicate. Weak spot conviction, concentrated liquidation clusters, and heightened geopolitical hazard mean the marketplace remains 1 header oregon 1 Powell remark distant from snapping lower.”

The station Bitcoin terms astatine a ‘hinge point’ arsenic traders await Fed determination today appeared archetypal connected CryptoSlate.