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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead
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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead

Why Bitcoin Could Trade Above $22,000 After Today’s FOMC Meeting

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 2:21 pm
2 mins read
Bitcoin Hashrate Plummets Following Crypto Winter, What Will Follow Onwards?

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Bitcoin is poised to experience volatility during today’s trading session. The crypto market is gearing up for the U.S. Federal Reserve (Fed) Federal Open Market Committee (FOMC) meeting which could result in a no-event or push risk-on assets down.

Related Reading | Shiba Inu Whales Trading Volume Surges 640% As SHIB Holds Critical Support

During this meeting, the Fed is expected to announce a hike in interest rates. According to trading desk QCP Capital, the market has ruled out the possibility of a 100 basis points (bps) increase.

Market participants expect a 75 bps, if the Fed meets expectations Bitcoin and other digital assets seem likely to resume their bullish momentum. QCP Capital said:

Every FOMC meeting this year has seen a positive immediate market reaction to the rate decision. We expect the same for this one.

In addition, the trading firm claims that there is a possibility of more upside based on the Fed adopting a “one-off 75 bps” hike. In the future, the financial institution could return to 50 bps on the back of a slow down in inflation metrics.

Contributing to this theory, U.S. public companies earning season has reported under expectations without major surprises so far. Tomorrow, July 28th, Apple and other big tech companies are expected to publish their earnings reports.

If there are no major surprises, the crypto market should benefit from both the FOMC meeting and a relief in legacy financial markets. On the latter, QCP Capital noted:

With the risk of an overly hawkish fed out of the way and with inflation slowing down, we think that markets will remain supported with the previous lows providing a base (BTC at 17,600 and ETH at 880).

The post-FOMC rally could be short-lived as Bitcoin and the crypto market continue to see high selling pressure from miners. In that sense, QCP Capital predicts sideways movement for the short to mid-term.

What Could Trigger More Downside Pressure?

The trading firm believes there is a wild card with the potential to negatively impact global markets. U.S. Representative for Congress and Speaker of the House Nancy Pelosi is apparently planning a visit to Taiwan.

If the visit ever materializes, there could be an escalation in tensions between the U.S. and China. QCP Capital said:

August tends to be quieter with the US and Europe on summer vacation. If tensions boil over, we might see a risk-off move in thin liquidity. From a volatility perspective, every FOMC this year has been a disappointment.

Related Reading | TA: Bitcoin Price Consolidates, Why Recovery Could Be Capped

At the time of writing, Bitcoin (BTC) trades at $21,400 with a 3% profit in the last 24 hours.

Bitcoin BTC BTCUSDT
BTC’s price trends to the downside on the 4-hour chart. Source: BTCUSDT Tradingview
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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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