Bitcoin’s Momentum Faces Potential Setback Ahead of FOMC Meeting
- Bitcoin is currently trading above $74,000 after achieving eight consecutive daily gains.
- Historically, BTC has posted negative returns in the two days following seven of the last eight Federal Open Market Committee (FOMC) meetings.
- Markets are pricing in a near certainty (around 99%) that the Federal Reserve will maintain interest rates between 350 to 375 basis points.
- The futures market anticipates only one rate cut of 25 basis points by year-end, indicating a prolonged period of high rates.
- Ongoing geopolitical tensions and oil prices around $100 per barrel are expected to exert upward pressure on inflation numbers.
As Bitcoin enters the FOMC meeting with strong momentum, historical trends suggest a potential “sell the news” reaction could occur post-meeting due to typical volatility associated with such events.
With Bitcoin’s price history indicating negative performance following FOMC meetings, traders may be cautious as they approach this upcoming decision.(Source)
