FOMC Metting On the Edge: Here’s What Next For Bitcoin & Ethereum Price

The BTC price has been maintaining a descending to stagnant trend throughout the day and has tested levels below $24,000 for a while. Moreover, the second largest crypto, Ethereum also witnessed the same fate and remained consolidated below $1650. With all the eyes now on the upcoming FOMC meeting, the entire crypto market is expected to remain volatile, while the impact may also be significant. 

The markets are about to witness a slight pullback with the release of the preliminary GDP data and PCE figures from the United States. The volatility of the markets may increase with the MoM of the FOMC which may ignite a fear factor among the investors who may remain unsure of the next move of the Bitcoin price which is expected to remain bearish. 

The authorities are again expected to deliver a hawkish stance in the Fed minutes, due to which the BTC price may remain consolidated. If the interest rates are increased, it may limit the liquidity flow which is not a sign of a healthy market. As investors typically withdraw their money from volatile assets amid higher yields. 

Alongside, multiple reports are expected to be released this week, including the Personal Consumption Expenditures Price Index, which may reveal that inflation remained strong throughout January. Hence justifying the raising interest rates by the FED.

Collectively, a volatile week has just begun, as the prices of major tokens are fluctuating at a larger pace. This may continue for a long as the volatility is expected to intensify in the next few hours from now.