Will the Fed Shake Up Cryptos ?
While the consensus is that the Fed will keep its rates unchanged this time, all eyes will be on its “Dot Plot“. This tool reveals central bank policymakers’ projections for future rate changes.
Market expectations currently point towards 1 to 3 rate cuts for the remainder of the year. A more aggressive decision with 3 cuts would be seen as a bullish signal for risk assets like Bitcoin. Conversely, 1 cut or less could indicate a bearish scenario, suggesting that the Fed remains more restrictive than anticipated.
Following the announcement, Fed Chairman Jerome Powell’s statement will be crucial. Investors will particularly scrutinize any hints regarding the eventual end of “Quantitative Tightening” (QT). Such an announcement could significantly boost market sentiment, according to analysts.
Bitcoin Under Pressure : Brace for Turbulence
Crypto commentators anticipate high volatility for Bitcoin around the Fed’s decision. Some warn of significant liquidation risks, with clusters at $81,640 and $84,800. Others are more cautious, expecting a period of “chop” (oscillations) leading up to the announcement.
In this uncertain context, technical analysts are closely monitoring key levels like $80,900 and $87,000, which could be interesting entry points. However, the overall trend will largely depend on the Fed’s decision and communication.
The Right Time to Buy Cryptocurrencies ?
The Fed’s announcement is always a key moment for the cryptocurrency market. A more accommodative policy could propel Bitcoin to new highs, while a more restrictive stance could exacerbate volatility.
In this uncertain environment, opportunities abound for savvy investors. On Bitget, you can take advantage of price variations by trading with advanced tools and optimized liquidity. Whether you aim to secure your gains or enter the market at the right time, Bitget provides an ideal environment to enhance your investment strategy.
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