With a recent plunge, Bitcoin traders are setting up to play the classic volatility game as the United States Federal Reserve decides on interest rate changes. Even though the market forecast is almost unanimous regarding the Federal Reserve’s next step, the uncertain short-term BTC price moves maintain the drama. The likely trigger for these oscillations is the Fed’s rate announcement, which could spark unpredictable, albeit short-lived, BTC price fluctuations.
In the midst of these predictions, keen eyes will be on both the announcements and the following commentary from Federal Reserve chair Jerome Powell. Jelle, a popular trader, anticipates intriguing events arising from Powell’s comments after the rate hike announcement. With a 98.9% likelihood of the Federal Reserve opting for a 25 basis point rise and only 1.1% chance of a 50 basis point increase, Jelle reiterated the market’s belief that this will be the last rate hike in the near future.
For some market stakeholders, the anticipated BTC price reaction has stimulated hopeful predictions. Notably, there is talk of a so-called “$16 million worth of plunge protection” bid liquidity sitting just below $28,000, likely signifying entities bracing for Bitcoin’s price response to the Fed’s decisions.
Simultaneously, the strengthening U.S. dollar appears tentative about its path ahead of the Fed. The U.S. dollar index has embarked on a moderate rebound after plunging to a yearly low—now teetering near 101—but showing a downward trend on the day. An inverse correlation with Bitcoin persists, which is a hot topic among some BTC traders who use historical trends for forward predictions.
In the meantime, changes are imminent in the cryptocurrency landscape following pending regulation changes. For instance, the leading cryptocurrency exchange Binance recently withdrew its crypto license application in Germany. Despite this, Binance expressed its intention to reapply for proper licensing in the country.
After regulatory challenges in the United States, the exchange’s European expansion plans have suffered a setback. Recent history in countries like the Netherlands and the United Kingdom, where Binance failed to secure a virtual asset service provider license, adds to the exchange’s regulatory challenges.
While the crypto market displays its characteristic unpredictability and jitters, traders worldwide hang on, eagerly anticipating their next moves, contingencies in place for the anticipated volatility. Despite all this, the outlook for Bitcoin remains undeniably thrilling as the crypto market continues to evolve within a global regulatory framework.
Source: Cointelegraph
