As positive sentiment and FOMO push Bitcoin and altcoins prices to a year-high, crypto traders focus on major events this week for another rally. After the CPI and the PCE data revealed cooling inflation, the U.S. Federal Open Market Committee (FOMC) to decide if further interest rate hikes are needed or go with another “pause.”
Crypto Traders Set Eyes On Fed Rate Decision
All eyes are on the U.S. Federal Reserve’s FOMC Meeting on October 31 and November 1, with the committee to decide between a dovish or hawkish approach.
CME FedWatch Tool indicates 96.2% probability of the Fed keeping interest rates unchanged as the Fed’s preferred gauge to measure inflation, annual Core PCE, slows to 3.7%.
While the traders are confident about a pause in the interest rate hike in the upcoming FOMC meeting, the possibility of a rate hike in the December 13 meeting is quite higher after recent speeches by the Federal Reserve officials. The Fed Chair Jerome Powell also hinted at a rate hike at the end of the year. The incoming data remain important for the Fed as the labor market remains tight.
The labor market report followed by ISM Manufacturing and Services PMI, JOLTs Job Openings, and factory orders are the other key events to watch this week.
Furthermore, earnings season continues to put pressure on the markets at a time when traders and investors look to add money to the market, delaying an upside movement. 20% of S&P listed companies to announce earnings report this week.
Bitcoin Rally Halts Amid Major Events
Pointing out two significant on-chain developments after the recent Bitcoin price rally, CryptoQuant research head Julio Monero recently said the rally may pause. The month’s end sentiment and the Fed’s rate decision move traders away from the market.
BTC price continues to move range-bound after the rally, with the price currently trading at $34,200. The 24-hour low and high are $34,098 and $34,743, respectively. However, trading volume has increased 35% in the last 24 hours.
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