Bitcoin Traders Await FOMC Decision Amid Price Volatility Predictions
Bitcoin traders approach a pivotal moment with the Federal Open Market Committee (FOMC) set to announce its policy decision on May 7. The Federal Reserve is expected to maintain the fed-funds rate at 4.25% to 4.50%, with a 98.2% probability according to CME Group’s FedWatch tool. Despite external pressures for lower borrowing costs, Chair Jerome Powell emphasizes price stability and a cautious approach given current economic indicators.
FOMC Implications for Bitcoin
The focus for Bitcoin is on market reactions to Powell's comments rather than the rate decision itself. Key insights include:
- Trader Josh Rager anticipates volatility following the FOMC announcement, with possible intraday fluctuations.
- Astronomer’s model suggests an 85% chance of reversals, yet acknowledges a prevailing upward trend in Bitcoin that may weaken this signal.
- Columbus points to technical indicators predicting potential dips into lower ranges if a hawkish tone is adopted by Powell.
- Momentum indicators indicate Bitcoin is consolidating, with bearish MACD signals suggesting slowing momentum.
Overall, the FOMC's language regarding future monetary policy will be crucial. If Powell indicates patience amid softening data, it could support bullish sentiments for Bitcoin. Conversely, hints of renewed inflation vigilance might lead to bearish pressure below $92,000. As of now, BTC is trading at approximately $94,097.
