Exclusive: Bitcoin Could Plummet After FOMC Meeting, Predicts Analyst
Bitcoin hovers near key Fibonacci retracement levels ahead of the FOMC decision, with traders eyeing potential emergency rate cuts. Investors, particularly those holding Bitcoin (BTC), are anxiously awaiting the release as it will provide an in-depth view of the Fed’s reasoning behind the recent monetary policy decisions. But could the FOMC meeting trigger a significant Bitcoin price correction?
Potential for a 30% Bitcoin Price Drop
A crypto analyst warned that the FOMC meeting might trigger high market volatility, potentially leading to a 30% drop in Bitcoin\'s value. This prediction hinges on the possibility of hawkish signals regarding future interest rate hikes. Trade tensions and fresh tariffs could further exacerbate the negative sentiment surrounding Bitcoin.
Bitcoin Below $30,000: Further Interest Rate Hikes Could Trigger a Plunge
Another analyst urged caution, noting that Bitcoin is now below the $30,000 mark, and another interest rate hike can make it plummet further. The market\'s sensitivity to Federal Reserve policy is currently exceptionally high. Investor sentiment hinges on the FOMC meeting and Fed Chair Powell’s signals, which may sway Bitcoin’s next price move, according to crypto analysts.
Expert Insights: Ojamu Partner Weighs In
Financial expert John Squire, the partner at Ojamu, an AI & analytics platform, believes the FOMC\'s stance will be crucial in determining Bitcoin\'s short-term trajectory. "The market is bracing for potential volatility. A hawkish Fed could trigger a sell-off, while a dovish tone might provide some relief," Squire stated.
Major Cryptocurrencies React to FOMC Minutes
Major cryptocurrencies experienced a decline on Wednesday evening following the release of the minutes from the September Federal Open Market Committee meeting. This highlights the interconnectedness of the crypto market with broader economic indicators and Federal Reserve policy.
A Contrarian View: Bitcoin to $200,000?
Not all predictions are bearish. Bitwise CIO Matt Hougan predicts Bitcoin could surge to $200,000 by year-end if the Federal Reserve adopts a dovish stance. This scenario emphasizes the potential for Bitcoin to benefit from a loosening of monetary policy.
The Importance of Bitcoin Dominance
A breakdown in Bitcoin dominance could also signal further weakness in the market, as altcoins tend to underperform during periods of Bitcoin price instability. Investors should closely monitor Bitcoin\'s market share in relation to other cryptocurrencies.
Navigating the Uncertainty: What\'s Next for Bitcoin?
The future of Bitcoin remains uncertain, heavily influenced by the upcoming FOMC meeting and subsequent Fed policy decisions. While some analysts predict a potential plummet, others foresee significant gains. Investors should exercise caution and conduct thorough research before making any investment decisions. Bitcoin may experience significant volatility in the coming days.