- Positive sentiment and FOMO have driven Bitcoin and altcoin prices to their highest levels of the year, and crypto traders are preparing for another rally by focusing on key events this week.
- All eyes are on the US Federal Reserve FOMC Meeting on October 31 and November 1, where the committee will choose between a soft or hard approach.
- Following the recent Bitcoin price rally, Julio Monero, the head of research at CryptoQuant, pointed out two significant on-chain developments, suggesting that the rally may pause.
Markets are closely watching the direction the U.S. Federal Reserve will take this week, with the expected interest rate decision on Wednesday causing a slowdown in Bitcoin.
Markets Focusing on the Fed’s Approach
Positive sentiment and FOMO have driven Bitcoin and altcoin prices to their highest levels of the year, and crypto traders are preparing for another rally by focusing on key events this week. As the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) data reveal cooling inflation, the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve will decide whether there is a need for further interest rate hikes or if another “pause” option should be pursued.
All eyes are on the U.S. Federal Reserve FOMC Meeting scheduled for October 31 and November 1, where the committee will decide between a dovish or hawkish approach. The CME FedWatch Tool indicates a 96.2% probability that the Fed will not change interest rates, mainly due to the annual Core PCE, the preferred inflation measure of the Fed, slowing down to 3.7%.
While traders may be confident that a rate increase will be paused at the upcoming FOMC meeting, the probability of a rate hike in the December 13 meeting is quite high, especially in light of recent speeches by Federal Reserve officials. Fed Chairman Jerome Powell has also hinted at a rate increase by the end of the year. The data coming in is crucial for the Fed as the labor market remains tight.
Following the labor market report, ISM Manufacturing and Services PMI, JOLTs Job Openings, and factory orders are other significant events to watch this week. Additionally, earnings season is weighing on the markets, delaying upward movement as traders and investors consider adding money to the markets. This week, 20% of S&P-listed companies will report earnings.
Bitcoin Rally Paused Due to Major Events
Julio Monero, the head of research at CryptoQuant, highlighted two significant on-chain developments following the recent Bitcoin price rally, suggesting that the rally may pause. End-of-month sentiment and the Fed’s interest rate decision are causing traders to step back.
BTC price is still trading within a range around $34,300, following the rally, and currently stands at around $34,300. The low and high values in the last 24 hours are $34,098 and $34,743, respectively. However, trading volume has increased by 35% in the last 24 hours.
