Key Points
- Bitcoin (BTC) remains near two-month lows as traders anticipate the next macro move in the United States.
- Market participants expect the Federal Reserve’s upcoming interest rates announcement and subsequent press conference to have significant impact on Bitcoin’s value.
Bitcoin (BTC) hovers near its two-month low as the financial market prepares for the next significant economic activity in the United States.
Data shows that Bitcoin’s price has been unpredictable, with new lows of $56,500 on Bitstamp just hours before.
Anticipation for Federal Reserve’s Announcement
Traders across risk assets are anxiously awaiting the Federal Reserve’s upcoming interest rates announcement and subsequent press conference from Chair Jerome Powell.
This anticipation follows the Quarterly Refunding Announcement (QRA), which negatively impacted the U.S. liquidity outlook. Market players are hopeful that Powell’s message after the Federal Open Market Committee (FOMC) meeting will not be overly hawkish.
Darius Dale, founder and CEO of risk management firm 42 Macro, suggested that Powell’s message is likely to confirm a more cautious policy normalization cycle.
Market Expectations and Predictions
CME Group’s FedWatch Tool data highlights the market’s low expectations for positive news, with a 99% chance of the Fed maintaining current rates.
However, trader CrypNuevo offers a more optimistic perspective, suggesting that the worst losses for Bitcoin and altcoins are likely over.
Trading firm QCP Capital also noted the potential for surprises from both Powell’s press conference and the QRA.
Bitcoin traders are closely watching important BTC price levels after several key thresholds were breached.
Analyst Rekt Capital compared BTC price pullbacks throughout the bull market which began in early 2023, describing the latest over 20% downward move as “typical”.
Filbfilb, co-founder of trading suite DecenTrader, predicted a potential Bitcoin resurgence, likening it to the trajectory of gold in recent years.
