Investors await the outcome of the FOMC meeting later this week, with chances of rate cuts looking nil amid warm US CPI data. Bitcoin’s recent price volatility and trading trends highlight the evolving relationship between traditional financial markets and the cryptocurrency space.
This week is very crucial for Bitcoin (BTC) and the broader cryptocurrency market, as several global central banks will undergo important policy meetings to tackle inflation ahead. This could potentially have a further impact on the Bitcoin (BTC) price and the broader cryptocurrency market.
There are important events to watch before this week:
Japan Policy Meeting
Starting today, March 18, the Bank of Japan will begin its two-day policy meeting. There is growing speculation that the Bank of Japan will abandon its negative rate policy at the upcoming meeting on Tuesday. Should the Policy Council choose to eliminate the negative rate and go ahead with what would essentially be the central bank’s first rate hike in 17 years, it would mark a significant departure from the unprecedented monetary easing measures Japan has implemented over the past decade to combat deflation.
Fed’s decision to cut interest rates
After that, the Federal Reserve will announce its decision on interest rates on Wednesday, a move that could significantly affect the price movement of Bitcoin.
In particular, reduced interest rates could reduce the appeal of traditional investments such as bonds and savings accounts, prompting investors to explore alternative avenues for higher returns, possibly Bitcoin (BTC). It could also trigger fresh capital inflows, leading to further Bitcoin price rally, according to the Crypto News Flash report.
Fed Press Conference
At the same time, another critical event will unfold on the same day. The Fed will hold a press conference to discuss the economy and provide insight into the future trajectory of Fed rates. Fed Chairman Jerome Powell’s indication that the central bank is nearing confidence in cutting rates suggests that bond traders have grudgingly accepted the reality of prolonged higher rates. Reflecting this sentiment, the 10-year Treasury yield remained near a three-week high on Monday, after rising more than 20 basis points the previous week.
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In other regions of the world, the Reserve Bank of Australia is likely to maintain its current interest rate stance, while Bank Indonesia and the Bank of England are expected to announce their respective policy decisions. In addition, Eurozone inflation figures are scheduled for release, along with the highly anticipated initial public offering of Reddit Inc.
Bitcoin and ETH Price Action
The Bitcoin (BTC) price has shown some volatility over the past weekend, oscillating in the range between $65,000-$70,000.
According to data from Greeks.Live, the trading activity in the Bitcoin market now mirrors the US stock trading hours, resulting in less active trading on the weekends and a more muted market atmosphere.
Today’s block trades involved predominantly spread trading, with put call bull spreads being the most traded, followed by put put bear spreads. Market sentiment for both BTC and ETH has remained relatively stagnant in recent days.
The only two block trades to exceed $20 million today appear to be hedge trades, with one side expressing bullish sentiment targeting above 70,000 and the other bearish sentiment aiming below 65,000. On the other hand, according to the Crypto News Flash report, the Bitcoin price could rise to new highs of $89,000.
Given the current trend trending towards weakness and the implied volatility still at elevated levels, the profit/loss ratio for short positions is starting to improve.
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Bitcoin trading activity is now significantly influenced by US stock trading hours, with trading activity being less active over the weekend and the market being more muted. Almost all of today’s block trades were spread traded, with sell call bull spreads being the most traded,… pic.twitter.com/YtFX7zO2C9
— Greeks.live (@GreeksLive) March 18, 2024
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