Bitcoin (BTC) was a critical point after the Federal Open Market Committee (FOMC) meeting on September 17, with the US Federal Reserve cutting interest rates at 25 base points.
This adjustment has resulted in intense immediate volatility in the market. At the end of this wording, according to the Cryptootic Price calculator, BTC will be negotiated for USD 116,400.
In the following graph provided by TradingView, the volatility BTC experienced since its US interest rate announcement: UU.
According to Entity President Jerome Powell, the decision to cut interest rates responded to signs that moderate cooling of inflation and strong labor markets would continue. According to the executive, the movement is “a step towards more neutral monetary policy.”
The market felt trembling
The Fed’s announcement moved through the Bitcoin market. For example, in the derived sector, there was a change in attitude from risk aversion to more balanced attitudes.
“The cash market showed slight sales pressure, but permanent people absorbed liquidity through a short squeeze,” says analytics company GlassNode. It also emphasizes that open interest in a lasting future reached a maximum of 395,000 BTC before returning to 380,000 BTC. There is a liquidation that is alternating between short and long in the context of volatility generated by the FOMC.
The options market also recorded milestones. Open profits hit a record of 500,000 BTC, with the expiration of September 26th being the largest in history. However, GlassNode warns that “if expiration dates flow around the biggest pain of $110,000, cash could have a strong impact on the market.”
In terms of terminology On-chain, Bitcoin is trading above the 95% cost base of the offer and is located at $115,200. “Making this level is key to maintaining the impulse, and losing it involves a risk of contraction at $105,500,” the company says. This means that almost entire circular allegations will be found after the Fed’s announcement and after the rebound.
GlassNode concludes that the Bitcoin market is in a fragile balance“The market is waiting for confirmation. Stability beyond the main cost-based levels can be extended upwards, but flow vulnerabilities continue to take advantage of downward risk,” the company emphasizes.
The views discovered
However, not all analysts match this scenario. Carmelo Aleman, Spanish expert in analysis On-chainprovided another vision for encryption. “What if BTC comes back from $115,000 and suddenly it goes back to $105,000? No, it’s not clear,” he says.
The specialist explains that digital assets have maintained an upward trend that began on August 31, and have already accumulated for 18 days, according to the daily price chart. therefore, He doesn’t think a set-off of under USD 115,000 was making a move.
Details of German that Bitcoin forms an inverted rate number. “And that’s rising and I want to reach $124,000,” he says. Under this analysis, the price of BTC attempts to reach its high resistance before a significant breakdown of trends occurs.
The same is a Doris Yau market analyst who will eliminate the idea that BTC could fall to US$105,000. “At that level, we don’t see any large pending liquidation, but at the 110,000 US dollar level, it’s more possible,” explained the experts in dialogue with this useful portal.
In Yau’s case, the market structure completely changed this cycle as institutional investors such as Bitcoin ETF emitters are already upwards. “And when each drop goes from 3% to 5%, large buyers are coming in right away,” he says.
Analysts believe that the increase in the Fed’s price has been increased and the volatility experienced will respond to that fact. In December 2024, the market has already grown by 40%.
“It’s a classic.”Buy rumors and sell the news‘”, and in addition, the BTC was merged and Powell spoke carefully, but upon completion he went from 115,000 US$ to 117,000 US$. strong Despite his conservative tone,” he says.
