K33 Research: This week's FOMC meeting is expected to increase market volatility, laying the foundation for Bitcoin's rise in the following weeks
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Odaily reports that after Bitcoin's first breakthrough above $108,000, it has taken a breather, with traders awaiting the Fed's rate cut expectations and assessing the bullish sentiment brought by President-elect Trump's support for cryptocurrencies. On Tuesday, Bitcoin touched $108,315 and has currently retreated to around $106,000. CoinGecko data shows that in this rebound, the total cryptocurrency market capitalization is approaching $4 trillion. The market generally expects the Fed to cut rates by another 25 basis points on Wednesday, but the Fed's policy outlook is uncertain due to the strong US economic growth and the inflationary risks posed by the President-elect's broader agenda. K33 Research analysts Vetle Lunde and David Zimmerman wrote in a report, "We expect this week's FOMC meeting to increase market volatility. After the FOMC meeting, the macroeconomic environment is likely to see a few calm weeks, which could lay the foundation for Bitcoin to further gain momentum during the holiday season." Bitcoin has risen more than 55% since November 5th when Trump won the presidential election. The highest open interest in call options on Deribit is concentrated at a strike price of $120,000. IG Australia Pty market analyst Tony Sycamore said there are reasons to "cautiously chase higher" at current levels.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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