Crypto Market Awaits Federal Reserve Meeting Outcome
The cryptocurrency market is eagerly awaiting the July 26, 2023 Federal Reserve meeting outcome on interest rate. Traders anticipate that the Federal Open Market Committee (FOMC) will raise the target rate by 25 bps, in what could be the last of the rate hikes in the current cycle. Meanwhile, Bitcoin is poised for the next round of bullish wave, having found support in the crucial area.
The CME FedWatch Tool, a platform that assesses the probability of the Fed changing the target rate, shows that the market is almost certain of a 25 bps hike from the current 500-525 bps. 99.2% of respondents are in agreement that the US central bank will impose an interest rate hike in the July meeting.
Low Volatility: What Does It Mean For Bitcoin Price?
At present, the top cryptocurrency’s volatility is at a six-month low due to the recent sideways movement around the news of financial giants like Blackrock filing for spot Bitcoin ETFs with the US Securities and Exchange Commission (SEC). According to Glassnode data, the last time Bitcoin saw such a tight volatility squeeze was in January 2023, when the crypto market registered a 30% rise. Historically, tight squeezes from sideways movements have usually preceded a bullish trend.
Bloomberg analysts noted that these scenarios usually act as precursors to a breakout move, given the cyclical nature of volatility. Earlier, Goldman Sachs analysts suggested that the July 2023 Fed meeting could be the last of the rate hikes in the current monetary tightening cycle. Therefore, any hint of relief in US Fed Chair Jerome Powell’s post-FOMC press conference could push Bitcoin closer to the next level of resistance, which is around $33,000.
