Bitcoin Likely Going Through A Bull Trap Ahead Of FOMC Minutes Release
Crypto Market News: Ahead of the Federal Open Market Committee (FOMC) June 2023 minutes release, the financial markets and crypto market are showing some volatility. The Bitcoin price fell closer to the weekly low, as traders anticipate a stance from the US Federal Reserve that could warn of rate hike probabilities in the upcoming FOMC meeting scheduled for July 25 and 26, 2023. While the majority of traders anticipate a 25 bps rate hike, it is the commentary on the monetary policy stance that could move the markets in the foreseeable future.
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In a recent speech at a Bank of Spain event in Madrid, Fed Chair Jerome Powell warned that there was a high probability that the FOMC implements two or more rate hikes by the end of 2023, stating that the process of achieving the 2% inflation target has a long way to go. Hence, much of the financial markets may have already priced in a 25 bps rate hike possibility.
Will Bitcoin Price Pick Up After FOMC Minutes Release?
The FOMC minutes will offer a detailed analysis on the current economic conditions prevailing in the United States, and how the Fed officials foresee the timeline for raising rates in the coming months. The threat of a crisis in the US commercial rea estate market in the fourth quarter of 2023 may also be analyzed in the report. Meanwhile, analysts predict that the next few months could be a phase of correction for the Bitcoin price before taking off in the fourth quarter. Hence, any optimism around rate hike pauses in the last quarter could boost the Bitcoin price after the meeting minutes release, essentially following a bear trap trend in short term.
According to the CME FedWatch Tool, an overwhelming 86% of the market is anticipating a 25 bps rate hike in the upcoming Fed meeting.
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