Bitcoin volatility has dwindled in the past four days after hitting a new high of around $28.6k. Trading around $28.3k on Wednesday, analysts forecast a spike in volatility in the next few hours as the Federal Open Market Committee (FOMC) prepares to release the third interest rates update of the year.
With the increased risk of more bank runs, bank depositors have significantly reduced as the demand for Bitcoin rises among investors.
As a result, Bitcoin traders anticipate the price to jump to around $30k before retesting lower prices.
Meanwhile, large-cap altcoins, including Ripple-backed XRP and Cardano’s (ADA), have gained traction in the past 24 hours. According to our latest crypto price oracles, XRP and ADA are up approximately 16 and 10 per cent in the past 24 hours, respectively.
Analysts on Bitcoin Price Amid FOMC Statement
High-impact news like the CPI and the FOMC statement on interest rates have greatly influenced Bitcoin’s volatility in the past. As such, economists and market analysts have been studying the correlation and giving market forecasts amid such highly impactful news.
According to popular crypto trader @CryptoTony, Bitcoin price will trend sideways until the FOMC statement. Afterwards, the trader thinks the Bitcoin price could spike to $30k before retracting.
“No doubt we will trend sideways until the meeting, which means tread cautiously. My main play is to take profit at $30,000 if it comes,” the trader highlighted.
Similarly, crypto trader Michael van de Poppe indicated that Bitcoin would spike to $28.7k before entering a consolidation level.
Meanwhile, a market commentator with a Twitter name @tedtalkmacro highlighted several scenarios for Bitcoin depending on how the Fed interest rates come in.
Source: https://coinpedia.org/bitcoin/bitcoin-investors-brace-for-potential-long-liquidations-heres-what-next-for-btc-price/