Why Bitcoin Price Could Bounce After Today’s FOMC Meeting

The Bitcoin terms has been moving sideways implicit the past fewer days bound solely to macroeconomic factors. The benchmark cryptocurrency was rejected northbound of $20,000 aft “The Merge” and seems poised to look volatility implicit today’s trading session.

At the clip of writing, Bitcoin (BTC) trades astatine $19,200 with sideways question successful the past 24 hours and a 5% nonaccomplishment implicit the past week. As the marketplace moves past “The Merge”, crypto has returned to its correlation with planetary markets and the astir important factors driving the terms action: ostentation and involvement rates.

BTC’s terms moving sideways connected the 4-hour chart. Source: BTCUSDT Tradingview What To Expect For The Bitcoin Price Ahead Of The FOMC Meeting?

Later contiguous the U.S. Federal Reserve (Fed) volition clasp its Federal Open Market Committee (FOMC) gathering wherever it volition denote its upcoming involvement complaint hike. As it has happened successful the past month, the crypto marketplace is poised to spot an uptick successful volatility up of this large event.

Market participants look to beryllium expecting different 75 ground points summation aft the latest Consumer Price Index (CPI) people and the Non-Farm Payrolls (NFP) metrics. The results of these reports hinted astatine persistent halfway ostentation successful the U.S. dollar, according to trading table QCP Capital.

The steadfast believes that the marketplace volition beryllium looking astatine today’s involvement complaint hikes, the Fed’s program for the aboriginal of its monetary policy, and its absorption to inflation. In that sense, today’s FOMC volition beryllium captious for marketplace participants to person a deeper penetration into the Fed’s strategy. The trading table wrote:

(…) we judge the absorption volition beryllium connected the Dot plot. Markets volition look for wide guidance connected the expected fig of hikes for the past 3 FOMC meetings of 2022, arsenic good arsenic the updated terminal complaint FOMC members are forecasting for adjacent year.

Without “The Merge” acting arsenic a bullish catalyzer, and with Ethereum trading nether a “sell the news” setup, the Bitcoin terms and crypto marketplace person flipped to utmost fearfulness levels. This sentiment seems to beryllium the norm crossed each fiscal sectors.

As seen below, adjacent Gold is displaying a precocious correlation with risk-on assets, QCP Capital stated. The precious metallic has underperformed successful circumstances wherever Gold should beryllium rallying, with precocious inflation, and a large limb struggle successful Europe (Russia invading Ukraine).

Correlation betwixt Gold and S&P500 (risk assets) trends to the upside. Source: QCP Capital via Twitter Bitcoin Price Set For A Relief Rally?

Finally, QCP Capital believes the Bitcoin terms and the crypto marketplace could spot immoderate relief. If the Fed stays wrong marketplace expectations, announcing a 75-bps involvement complaint hike, cryptocurrencies and different risks connected assets could respond to the upside.

As trading steadfast noted, each FOMC gathering successful 2022 has led to a crypto alleviation rally, this clip seems poised to determination successful tandem with humanities data. QCP Capital added:

How agelong this rally lasts is different question though. Will it conscionable beryllium a azygous time abbreviated compression similar successful May and June? Or tin we yet prolong immoderate affirmative momentum into Q4 and the adjacent CPI pivot successful 3 weeks.