A few hours before the key decision of the federal reserve system, traditional markets freeze. It comes to life among the current market. While Wall Street retains his breath, Bitcoins traders intensify their long positions and bet on a favorable scenario. This agitation exceeds a simple technical bet. This reflects the offensive strategy in the context of monetary uncertainty. While the Fed is going to decide on its rates, the crypto market seems to have already taken a position, ready to earn money on the smallest slope of economic discourse.
In short
- On the eve of the Fed decision on rates, the Bitcoins market shows an unusual upper activity.
- Technical data confirms the intensity of movement: an increase in open interest by $ 189 million and a volume of +15 %.
- The amount of funding remains neutral but more accurate optimistic, reflecting a certain nervousness of the market.
- Jerome Powell’s speech will weigh heavy: his tone could verify or destroy the bull’s hopes of investors.
Bull bet before verdict
Since May 6, the Bitcoin market has shown clear signs of strategic accumulation with access to the decision of the American Federal Reserve. Its price stabilized around $ 96,800, which is a level identified as a support area of several analysts.
Axel Adler Jr. “Haussier cluster of long positions” At this threshold reminiscent of a similar movement that occurred at the end of April, which then powered Bitcoins up to $ 97,500.
This concentration of positions testifies to the apparent will of the use of investors to stand up before the Fed decided on the level of interest rates.
Such a location is accompanied by technical indicators in a clear procedure that underline the intensity of the bull’s engagement. Here are some important data:
- The open interest on bitcoin term contracts jumped by 2,000 BTC, which represents an injection of $ 189 million per few hours;
- The aggregated volume of transactions has increased by 15 %, which is a clear sign of permanent purchasing pressure despite a slight price drop;
- The amount of funding has remained generally neutral in the last hours, but has reached a temporary peak of 0.018 %, indicating occasional outbreaks of optimism in lever effects traders.
Analyst Michaël van de Poppe, founder of Velomn Capital, also sees a positive signal for the coming days in this reflection. Declared May 6 on X: “I think we will continue to move up on Bitcoins. The key factor is to find out if gold is starting to correct tomorrow after meeting, suggesting the beginning of the economic cycle.”.
This configuration clearly shows that Bitcoin Bull Bitcoin Investors are not satisfied with the anticipation of the decision, but are already playing for the rest of the macroeconomic scenario.
Fed, catalyst of programmed volatility?
In addition to recent technical movements, it is the history of correlation between Fed’s decisions and the behavior of Bitcoin, which attracts the attention of analysts. According to Swissblock, a company specializing in cryptus management, bitcoin momentum systematically slows down on the days of previous monetary policy decisions before it becomes very volatile right after.
In the analysis published on X, the cabinet shows that this effect is recurring:
At the last five Fed meetings, the price of bitcoins stagnated or dropped slightly before the publication and then recorded high volatility within 48 hours.
The Measure (ROC) After more than 25 days, the indicator followed by Swissblock, is currently in the Bull Phase, indicating a possible positive impulse for BTC, assuming that Jerome Powell’s speech does not cool down.
This type of configuration increases importance timing For operators. This reflects some structural hesitation typical of a period where macroeconomic algorithmic models adapt to the tone of institutions. More than a possible rate change, it is the tone that Jerome Powell during his press conference, which will be explored.
Speech, which is considered too careful, could suffocate the momentum observed on bitcoins, while the report on stability or economic resistance could, on the other hand, serve as a springboard for a new bull pulse.
In this context, news around the Fed exceeds its direct impact on the price of crypto. It acts as a revelation of the growing dependence of these assets with traditional macroeconomic cycles. Thus, these meetings of this day could affect the immediate BTC trajectory, but also redefine the way investors perceive decoreliament between crypt and classic financing. The next few days is therefore decisive, at the intersection of speculative dynamics and monetary foundations.
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A graduate of the Toulouse and the Blockchain Consultant Certification certification holder and I joined the adventure of Cointribuna in 2019. I convinced of the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.
