As financial markets anticipate the next Federal Open Market Committee (FOMC) meeting this Thursday, Bitcoin traders are eyeing potential opportunities for a market upswing.
Past FOMC events have been followed by rallies in Bitcoin’s price, which may indicate another one is imminent. This is during a rather turbulent time for Bitcoin as it experienced a 3.93% drop on Tuesday and is currently valued at $66,745.
Bitcoin Price Rise Post FOMC
Over the last four FOMC meetings, each of these has been accompanied by a local bottom and further price increases of more than 20%. It has already drawn the interest of traders and other analysts, who are now contemplating possible repeats of this pattern after this week’s meeting. Roman, a trader, mentioned the potential for the upcoming opportunities, stating,
“Getting closer to support. Will be looking to enter longs if a reversal presents itself.”
The upcoming FOMC meeting is of much interest for its effects on classical financial markets, and its possibilities to affect cryptocurrencies, including Bitcoin. Given that the U. S. Consumer Price Index (CPI) report is also scheduled for release on Wednesday, much anticipation is expected. According to the analysts, the CPI inflation rate is expected to be 3.4% which has the potential of affecting the monetary policy of the Fed.
Amidst these economic indicators, Bitcoin’s open interest in futures markets has surged to new heights, currently at $18.752 billion. This rise in open interest is indicative of increased trading activity and enthusiasm in the market, which is often associated with increased volatility and potential price surges in Bitcoin.
Crypto analyst Ali Charts on the X platform pointed out that “Bitcoin loves rebounding post-FOMC meetings,” which is a behavior that has been observed and exploited by traders.
Trading Activity and Whale’s Trend
The trading patterns of Bitcoin are somewhat taking a rather cautious yet hopeful turn among the investors. The price changes of Bitcoin in the past few days, coupled with the rise in open interest, shows that traders are getting ready for price movements that could happen after the release of the economic data and the Fed’s decisions.
Adding to the market buzz, a dormant wallet transferred 8,000 BTC, valued at approximately $535.64 million, to Binance. This wallet had been inactive since receiving the Bitcoin in December 2018, when the price was $3,810. Such large movements often indicate significant market players preparing for upcoming volatility.
A wallet that had been dormant for 5.5 years transferred 8K $BTC($535.64M) to #Binance 40 mins ago.
The wallet received 8K $BTC on Dec 6, 2018, when the $BTC price was $3,810.https://t.co/zvxAKbHKi6 pic.twitter.com/ZKZHdm4JkR
— Lookonchain (@lookonchain) June 11, 2024
Also, with prices hovering just above the $67,000 level that acted as a support level after a period of consolidation, traders have warned about the risk, owing to the flat price action in contrast to increasing open interest. As a result, the next FOMC meeting, alongside the previous patterns of Bitcoin’s recovery after such meetings, has the majority of traders anticipating a rise in price.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
