Today, all attention in the Bitcoin and altcoin market is focused on the critical Federal Reserve meeting. Although the main scenario expected by the market is for interest rates to remain unchanged, a rate hike is not completely off the table. According to CME FedWatchTool, the probability of a 25 basis point Fed rate hike in July is estimated at 31.5%.
Although expectations remain mixed, leading cryptocurrency analytics firm K33 Research suggested that the impact of the upcoming Fed interest rate decision on Bitcoin could be less significant and more limited compared to previous cycles.
Fed's Decision May Have a Limited Impact on Bitcoin!
K33 Research Head of Research Vetle Lunde stated in a report that Nasdaq entered July with strong upward momentum and significant positioning, while Bitcoin continued to trade sideways with volatility near multi-year lows.
According to Lunde, this situation has caused the correlation between Bitcoin and Nasdaq to approach its lowest levels in recent years, suggesting that the price movements of these two assets may increasingly diverge.
Therefore, Lunde stated that this Fed decision may not be as decisive for the price of $BTC as in the past. According to Lunde, Bitcoin's low volatility and sideways movement (leading to a dampened response to macroeconomic events), along with the divergence in price behavior from the Nasdaq index, could limit the impact of Fed decisions on $BTC and the cryptocurrency market.
Bitcoin's Rally May Continue Even After the FOMC Meeting!
Apart from K33 Research, another analyst believes the Fed's decision will have a limited impact on $BTC. Popular analyst Michael van de Poppe predicts that the rise in $BTC will continue even after the FOMC meeting.
Van de Poppe asserts that Bitcoin has shown a confident recovery and is likely to continue its upward move after the FOMC meeting. He added that the market has already priced in excessive fear ahead of the FOMC meeting, and Bitcoin's strong resilience supports the view that the rally will persist.
*This is not investment advice.
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