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Bitcoin (BTC) prepared for its classic volatility as the decision on the interest rates of the United States Federal Reserve Bank was announced on July 26. The data obtained showed that the BTC price movement was close to $29,200.
Price Effects on BTC!
Bitcoin’s volatility, which has hardly moved since the beginning of the week, was completely on the radar of market participants due to the macro triggers being just a few hours away.
The first of these triggers was the announcement of the Fed interest rates, which traditionally gave a hint that it would trigger short-term BTC price movements if unreliable. Both the announcement itself and the subsequent comments by Fed Chairman Jerome Powell received attention throughout the day. In a section of his recent analysis, popular trader Jelle included the following statements for his Twitter followers:
The market has priced in a 25 basis point rate hike and currently believes this will be the last rate hike for a while.
Jelle refers to the almost unanimous expectations that the Fed will raise 25 basis points. According to CME Group’s FedWatch Tool, these rates were 98.9% at the time of writing, with only a 1.1% chance of a 50 basis point increase.
Material Indicators, an on-chain monitoring source that analyzes the order book on the largest global crypto exchange Binance, noted that one or more tokens were ready to react to the Fed with new losses in preparation for BTC’s price. The $16 million worth of “dip protection” proposal liquidity remained slightly below $28,000 during the day.
Fed Expectations!
The strength of the US dollar also appeared to be similarly uncertain in the trajectory ahead of the Fed. The US Dollar Index (DXY), after hitting its lowest level in over a year, is currently in the middle of a recovery, approaching 101 after another downhill journey during the day.
DXY, which is traditionally inversely correlated with risk assets and Bitcoin, continues to be of interest to some BTC investors who follow historical trends. Among them, popular analyst Moustache, who presented a Bitcoin/DXY scenario reflecting previous Bitcoin bull runs earlier this week, argued that a Bitcoin explosion is just a matter of time.
