Bitcoin is poised to experience volatility during today’s trading session. Today’s trading session will see volatility in the crypto market as it prepares for the U.S. Federal Reserve Federal Open Market Committee FOMC meeting. This could lead to a zero event or lower risk assets.
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The Fed will likely announce an increase in interest rates at this meeting. QCP Capital’s trading desk says that the market is ruled out the possibility for a 100-basis point (bps) rise.
Market participants anticipate a 75 basis point increase, provided that the Fed fulfills expectations. Bitcoin and other digital assets are likely to regain their bullish momentum. QCP Capital said:
This year, every FOMC meeting has witnessed a positive reaction from the market to any rate decision. For this meeting, we expect the same.
In addition, the trading firm claims that there is a possibility of more upside based on the Fed adopting a “one-off 75 bps” hike. A slowdown in inflation could lead to the return of 50 bps by the financial institution.
U.S. companies have been reporting below expected earnings without any major surprises, which is consistent with this theory. Tomorrow is July 28ThApple and the other major tech companies will publish earnings reports.
The FOMC meeting should not have any major surprises. However, crypto markets will benefit from a reduction in the legacy financial market. QCP Capital made the following observation about the former.
We believe that the markets will be supported despite the possibility of an excessively hawkish Fed and slowing inflation. The previous lows (BTC 17,600, ETH 880) provide a foundation.
As miners continue to sell Bitcoin and other crypto markets, the rally after FOMC could prove short-lived. QCP Capital sees sideways movements in the near- and mid-term.
Is there a way to increase the downside pressure?
According to the trading company, there could be a “wild card” that can negatively affect global markets. Nancy Pelosi, the U.S. Representative to Congress and Speaker in the House of Representatives is reportedly planning a trip to Taiwan.
If this visit happens, tensions could escalate between China and America. QCP Capital stated:
August can be more peaceful than July, with Europe and the US on their summer vacations. We might experience a move towards thin liquidity if tensions rise. Volatility-wise, each FOMC meeting this year was disappointing.
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Bitcoin (BTC), which trades at $21,400 as of the writing time, is currently earning a 3% profit over the last 24 hour.
