FOMC

Bitcoin

Impact

As the crypto market braces for the Federal Open Market Committee (FOMC) meeting, analysts are predicting potential volatility for Bitcoin and Ethereum. Crypto analyst Michaël van de Poppe highlighted the significance of Wednesday’s FOMC decision, unemployment data, and the launch of ETFs in Hong Kong. Moreover, he underscored the impact of these events on the <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener">Bitcoin price.</a> 
<h2 id="fomc-impact-on-bitcoin-price">FOMC Impact On Bitcoin Price</h2> 
Poppe stated, “Multiple arguments for a potential bottom to be happening on #Bitcoin,” suggesting that market dynamics could shift post-FOMC. In addition, Poppe also noted the historical pattern of Bitcoin dropping pre-FOMC and rebounding afterward, indicating a possible trend repetition. 
Crypto Kid, another analyst, echoed concerns about the FOMC’s impact. In a <a rel="nofollow" href="https://youtu.be/biybcnnKvDI?si=46Na4kOPtWMoXC-L" target="_blank">YouTube</a> video, the analyst emphasized the importance of any hint regarding interest rate hikes. He warned, “If the FED will hint a possibility of interest rate hikes…expect every single Market to correct.” This sentiment underscores the market’s sensitivity to macroeconomic policies and signals from central banks. 
He cited the rising inflation as a critical factor in determining a rate hike, which could adversely affect the crypto market. Poppe’s observation that Bitcoin’s recent movements suggest a market correction aligns with Crypto Kid’s cautionary tone. Both experts suggest that the FOMC meeting could trigger significant market reactions, potentially influencing Bitcoin’s price trajectory. 
In a post on X, Poppe cautioned against a bottom in the <a href="https://coingape.com/blog/bitcoin-price-will-btc-price-drop-below-60k/" target="_blank" rel="noopener">Bitcoin</a> price. He wrote, “Expecting some more downside on #Bitcoin to be happening, after which I think we’ll find the bottom within one week. Taking liquidity &lt;$61K and rotate back up from there.” 
However, in case of a Fed rate pause or a cut (which is unlikely), the Bitcoin price could attain a major boost. In addition, the influx from Hong Kong ETFs and BTC whale accumulation, a rebound in BTC’s price trajectory. Analysts also foresee a rebound to the $70,000 level if the macroeconomic factors play in Bitcoin’s favor. 
Also Read:&nbsp;<a href="https://coingape.com/trending/why-microstrategy-is-still-buying-bitcoin-despite-53-million-loss/" target="_blank" rel="noopener">Why MicroStrategy Is Still Buying Bitcoin Despite $53 Million Loss?</a> 
<h2 id="is-hong-kong-etf-launch-bullish">Is Hong Kong ETF Launch Bullish?</h2> 
The anticipation surrounding the launch of ETFs in Hong Kong has been tempered by regulatory restrictions and market realities, according to insights from Crypto Kid. Despite initial bullish sentiment, concerns arise over the exclusion of Chinese local investors from participating in <a href="https://coingape.com/us-bitcoin-etf-sees-4th-straight-outflow-of-51m-hk-etf-debut-propels-btc/" target="_blank" rel="noopener">Hong Kong Bitcoin ETFs</a>. The crypto analyst highlighted the limited scope of potential inflows. 
In addition, he noted that the entire Hong Kong ETF market is smaller than the Bitcoin holdings of US institutions. Furthermore, Crypto Kid explained the mechanics of ETF flows. The analyst also emphasized that inflows and outflows are contingent on market demand and price movements.. 
Meanwhile, he cautioned against overreaction to BlackRock’s recent lack of Bitcoin accumulation and attributed it to the natural dynamics of ETF operations. While the potential introduction of ETFs in Australia and plans for Singapore signify expanding opportunities, Crypto Kid stressed the early stages of these developments. However, he also terms the Hong Kong ETF launch overhyped as he believes it’s not that bullish as it is expected to be. 
Also Read:&nbsp;<a href="https://coingape.com/price-predictions/bitcoin-btc-price-prediction/" target="_blank" rel="noopener">Bitcoin (BTC) Price Prediction April 2024, 2025, 2026, 2030, 2040 – 2050</a> 
The post <a href="https://coingape.com/how-will-bitcoin-price-react-to-fomc-meeting/">How Will Bitcoin Price React To FOMC Meeting?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

How Will Bitcoin Price React To FOMC Meeting?

Table of Contents

Coingape News Media

Other articles published on Apr 30, 2024

One Life to Live: The Finals Launches Unforgiving “Terminal Attack” Mode

Bitcoin Users Outraged After Disruption in Testnet Functionality

A Warning Sign in Bitcoin’s Chart

Top 4 Emerging Crypto Presales Of 2024: Layer 1 BlockDAG Tops List With Dogeverse, 5th Scape, ETF...

Innovative and Promising Projects of 2024

Terraform Labs Proposes $1M Penalty in SEC Lawsuit

Join our free newsletter for daily crypto updates!