Bitcoin’s Price Stagnation Amid Potential Fed Policy Shift
- Bitcoin is trading at $91,150, down by 1.2% over the past day, according to CoinGecko.
- The cryptocurrency has been rangebound between $90,000 and $94,000 for nearly two months.
- Bitcoin’s Implied Volatility Index is near a multi-year low of around 43.
- CME FedWatch tool shows only a 5% chance of a rate cut on January 28.
- U.S. job growth in December was just at its lowest since 2003, with only 50,000 jobs added.
- Core inflation remains above the Federal Reserve’s target at 2.6%.
Experts argue that the market is underestimating the likelihood of a Federal Reserve rate cut due to political pressure and conflicting economic data. The current low volatility in Bitcoin suggests investors may not be pricing in potential changes in Fed policy expectations.
If inflation data surprises on the downside, it could lead to a significant Bitcoin rally as markets adjust their expectations for Federal Reserve actions.(Source)
