The calm that the market is going through could experience a change this Wednesday afternoon when the Federal Reserve (Fed) publishes its latest monetary policy decision
The market of cryptocurrencies It is currently in a stage of relative stability, aligned with the tranquility perceived in the prices of the main digital assets, in line with that of the equity and fixed income markets. This Wednesday, Bitcoin is trading at US$27,187.06, while the Ethereum It does so at US$1,632.04.
However, this calm could experience a change this Wednesday afternoon when the Federal Reserve (Fed) publish its latest monetary policy decision and its medium-term outlook. Despite this, analysts maintain that, regardless of the result, Cryptocurrencies are likely to remain completely calm.
Federal Reserve FED
Bitcoin, waiting for the Fed’s resolution
The QCP Capital firm expresses its doubts that the volatility comes directly from the Federal Reserve. They anticipate that taking into account the last three meetings of the year, it is likely that the appetite within the organization that leads Jerome Powell to increase rates be extremely low.
These experts believe that Powell will try to provide “fuzzy” guidance in his subsequent press conference to dampen volatility, making consensus expectations unlikely to change significantly. According to the tool datato CME FedWatchthe predominant trend is that the Fed No will modify interest rates for the remainder of the year.
On the other hand, Markus Thielen, research director at Matrixport, highlights that, depending on the prices of the Bitcoin options market (BTC), traders anticipate that the leading cryptocurrency it will only move 2.8% until this Friday. This suggests that no disruptive comments are expected from the president. Powell that can significantly impact the market.
Analysis of the options market is based on derivative contracts which give buyers the right, but not the obligation, to buy or sell the underlying asset at an agreed price at a later date. This is commonly used to assess the potential volatility of the underlying asset following a relevant event.
Several analysts support the idea that the Fed has reached the end of its increase cycle, although they acknowledge that the data could give Chairman Jerome Powell and his team the justification to adopt a more aggressive stance. However, they also warn of a risky combination facing the country: consumption that will likely slow in the coming months, a reduction in fiscal stimuli, and a labor market that is beginning to show signs of fragility.
Source: Ambito
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