Bitcoin Rise Depends on Moderate Messages From Fed!

  Bitcoin Rise Depends on Moderate Messages From Fed! Bitcoin stands in tight space, as Market Focus says on Wednesday's Federal Reserve monetary policy statement.

The Fed's Policy Statements on Wednesday Are Likely to See a Market Reaction (Positive or Negative)!

According to data from CoinDesk, Bitcoin has been trading between $39,400 and $41,300 since Monday. “Traders await the Fed announcement,” said Brian Tehako, CIO of Warwick Capital Management. According to Singapore-based QCP Capital, the event is likely to lead to a dual market reaction, with the bilateral reactions being described as dramatic developments triggering major moves in the market. QCP Capital has predicted that cryptocurrencies will reach their highest potential by September if the Fed gives moderate messages. Bitcoin dropped from $58,000 to nearly $30,000 in the eight days leading up to May 19. Currently, Bitcoin (BTC, -2.57%) has been falling due to the fear of the Fed's tightening policies, while gold closed May with a 7,8 % gain.

On the other hand, a harsh message from the Fed may put pressure on crypto prices!

QCP Capital said, “If the Fed delivers harsh messages on Wednesday, all bets are off and we will watch the crypto market revisit recent lows.” said.

Bitcoin Rise Depends on Moderate Messages From Fed!

According to Patrick Heusser, Asset Manager of Zurich-based Crypto Broker AG, “The harsh response could trigger a flight to safe havens like Frank, Yen and Usd.”

The Crypto Market Is Positioned On The Rise Due To The Post-Fed Volatility!

“The crypto market appears to be an activity heading towards the gamma,” Denis Vinokourov, head of research at Synergia Capital, told CoinDesk. said. Footnote: Gamma refers to the rate of change of the option. Option price, on the other hand, is its sensitivity to changes in the price of the underlying asset. In other words, gamma measures the rate of change in the price of the option according to the changes in market prices. Long gamma means holding an option position with a net gamma greater than zero, which will benefit from an increase in the price volatility of the underlying asset.  

Source: www.coindesk.com

 

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