Critical Day for Bitcoin: How Will the Fed's Interest Rate Announcement Impact Prices?
Leading cryptocurrency analytics firm Blofin has released an updated report on the cryptocurrency market.
In a recent report, Blofin, a leading cryptocurrency analytics firm, focused on the factors affecting the cryptocurrency market. The company noted that, 24 hours before the FOMC meeting, the main scenario was a slow decline in inflation and economic growth. Blofin also indicated that recession risks are not very high.
The analysis highlighted the Bitcoin (BTC) options market, emphasizing significant negative gamma between $65,000 and $70,000. This situation is said to increase price volatility. The primary reason for the negative gamma was identified as the dominance of options expiring on August 2.
Blofin cautioned that with the approaching expiration date, market price fluctuations might increase, advising investors to remain cautious during this period.
” 24 hours before the FOMC meeting, the main scenario includes a slow decline in inflation and growth, with recession risks not being very high. Significant negative gamma and increased price volatility are observed between $65,000 and $70,000. This negative gamma is primarily due to Bitcoin options dominating the market, with options expiring on August 2. As the expiration date approaches, market price fluctuations may increase. “
Critical Day for Cryptocurrencies
In recent weeks, the cryptocurrency market has been shaped by political data from the U.S., and today it will focus on financial data. On July 31, the U.S. Federal Reserve (FED) will announce its interest rate decision.
Half an hour after this announcement, FED Chair Jerome Powell will hold a press conference. The market expects the FED to keep the interest rate at 5.5%. Currently, no interest rate cuts are anticipated, with investors focusing on September for the first potential reduction.
Note: This is not investment advice
