Later today, Bitcoin investors would be awaiting Jerome Powell’s comments after the Fed meeting as to how are they willing to tackle inflation going ahead.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Ahead of the US Fed meeting later today, July 31, Bitcoin price has been showing some volatility bouncing off from the crucial support of $65,500 twice in the last 24 hours. Many traders are bullish for BTC breaking out to new all-time highs following the expected rate cut in September.
In a message on the X platform, pseudonymous crypto trader Rekt Capital stated that although Bitcoin has failed to break the reaccumulation range of $65,000-$70,000, such a breakout was as such unlikely within 100 days after Bitcoin halving.
Earlier this week on July 29, the BTC blockchain network completed the halving event. On the other hand, several other traders are bullish expecting the BTC price to breach $100K before the end of 2024. But crypto trader Daan Crypto Trades stated that such a possibility looks more likely in early 2025 than in 2024.
“The higher timeframe Bitcoin chart does look great to me. I think six figures this year might be a bit early, but I am pretty confident that we’ll see it somewhere in 2025,” he said.
In the short term, Daan Crypto Trades is focusing on the $70,000 to $74,000 range, noting that it has faced numerous rejections over the past few months. “I suspect we will see rapid expansion higher once BTC can break above that price range,” he added.
In an announcement earlier today, the Bank of Japan announced rate hikes taking the interest rate to 0.25%. This led to some volatility across asset classes such as crypto, equity, and the Japanese Yen.
Investors would be awaiting Jerome Powell’s comments after the Fed meeting as to how are they willing to tackle inflation going ahead. The chances of rate cuts in today’s meeting are almost negligible with macro pundits expecting the 25 bps rate cut to happen in the September meeting.
Additionally, the BioFin Academy stated that there’s a major negative gamma between $65,000-$70,000 that could lead to greater price volatility. this negative gamma is majorly due to the Bitcoin options expiring on August 2. Thus, with the expirations approaching close, market fluctuations could rise as well.
2. With upcoming events represented by the FOMC meeting, affected by risk-averse sentiment, the short-term skews of BTC remain negative. The recovery in the butterfly index further indicates investor concerns about recent risks. Notably, the significant price changes in BTC are… pic.twitter.com/7v9E04IlTY
— BloFin Academy (@BloFin_Academy) July 30, 2024
On the other hand, CryptoQuant data shows some on-chain positive development for BTC. In recent days, there has been an increase in Bitcoin outflows from exchanges, despite Bitcoin entering a fluctuation phase since February. This rise in Bitcoin outflows could indicate a positive sign for a potential price increase.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
