- Investors are awaiting the outcome of the FOMC meeting later this week with chances of rate cuts seeming null amid hot US CPI data.
- Bitcoin’s recent price volatility and trading trends underscore 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 key policy meetings to tackle inflation going ahead. This could potentially have a further impact on the Bitcoin (BTC) price and the broader cryptocurrency market.
There are key events to watch ahead of this week:
Japan Policy Meeting
Starting today, March 18, the Bank of Japan will kickstart its two-day policy meeting. There is increasing speculation that the Bank of Japan will abandon its negative-rate policy during the upcoming meeting on Tuesday. Should the Policy Board opt to eliminate the negative rate and proceed with what would essentially be the central bank’s first rate hike in 17 years, it would signify a significant departure from the unprecedented monetary easing measures implemented by Japan over the past decade to combat deflation.
Fed’s Interest Rate Cut Decision
Following that, the Federal Reserve will announce its decision on interest rates on Wednesday, a move that could significantly influence the price movement of Bitcoin.
Notably, reduced interest rates can diminish the appeal of traditional investments such as bonds and savings accounts, prompting investors to explore alternative avenues for higher returns, potentially including Bitcoin (BTC). It can also trigger fresh capital inflow, leading to further Bitcoin price rally, per the Crypto News Flash report.
Fed Press Conference
Simultaneously, another critical event will unfold on the same day. The Fed will conduct a press conference to discuss the economy and provide insights into the future trajectory of Fed rates. Fed Chairman Jerome Powell’s indication that the central bank is nearing the confidence to reduce rates suggests bond traders have reluctantly accepted the reality of prolonged higher rates. Reflecting this sentiment, the 10-year Treasury yield remained near a three-week high on Monday, following a rise of over 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 slated to announce their respective policy decisions. Additionally, Eurozone inflation figures are scheduled for release, alongside the highly anticipated initial public offering of Reddit Inc.
Bitcoin and ETH Price Action
The Bitcoin (BTC) price has been showing some volatility during the last weekend oscillating in the range between $65,000-$70,000.
According to data from Greeks.Live, the trading activity in the Bitcoin market now closely mirrors U.S. stock trading hours, resulting in less active trading over the weekends and a more subdued market atmosphere.
Today’s block trades predominantly involved spread trading, with sell call bull spreads being the most traded, followed by sell put bear spreads. Market sentiment for both BTC and ETH has remained relatively stagnant in recent days.
The only two block trades exceeding $20 million today appeared to be hedge trades, with one side expressing bullish sentiment targeting over 70,000 and the other side bearish sentiment aiming for under 65,000. On the other hand, as per the Crypto News Flash report, the Bitcoin price can soar to new highs of $89,000.
Given the current trend leaning towards weakness and the implied volatility still at elevated levels, the profit/loss ratio for selling positions is beginning to improve.
Bitcoin trading activity is now significantly impacted by U.S. stock trading hours, with trading activity being less active over the weekend and the market being more subdued.
Almost all of today’s Block trades were traded in spread, with sell call bull spreads traded the most,… pic.twitter.com/YtFX7zO2C9— Greeks.live (@GreeksLive) March 18, 2024
