October 31, 2023
As positive sentiment and FOMO push Bitcoin and altcoins prices to a year-high, crypto traders are eagerly awaiting major events this week that could potentially trigger another rally. One of the key events on their radar is the U.S. Federal Reserve's Federal Open Market Committee (FOMC) Meeting on October 31 and November 1. The outcome of this meeting will determine whether the Fed will proceed with further interest rate hikes or opt for a 'pause'.
The FOMC Meeting has garnered significant attention from crypto traders, who are closely monitoring the committee's decision. There is speculation about whether the Fed will adopt a dovish or hawkish approach. According to the CME FedWatch Tool, there is a 96.2% probability that the Fed will keep interest rates unchanged. This is supported by the slowing annual Core PCE, the Fed's preferred gauge for measuring inflation, which currently stands at 3.7%.
While traders are confident about a pause in the interest rate hike during the upcoming FOMC meeting, there is a higher possibility of a rate hike in the December 13 meeting. Recent speeches by Federal Reserve officials, including Fed Chair Jerome Powell, have hinted at a potential rate hike at the end of the year. The incoming data, particularly the labor market report, remain crucial for the Fed as the labor market continues to remain tight.
In addition to the FOMC Meeting, there are several other key events that traders are keeping an eye on this week. These include the release of the labor market report, ISM Manufacturing and Services PMI, JOLTs Job Openings, and factory orders. These events will provide further insights into the state of the economy and potentially impact market sentiment.
The recent Bitcoin price rally has experienced a temporary halt due to two significant on-chain developments. Julio Monero, the head of research at CryptoQuant, highlighted the month-end sentiment and the Fed's rate decision as factors that have caused traders to step back from the market. As a result, Bitcoin's price has been trading range-bound at around $34,200. Although the trading volume has increased by 35% in the last 24 hours, the market remains cautious amidst the ongoing major events.
Crypto traders are eagerly awaiting the outcome of the Fed's rate decision and closely monitoring other key events this week. The Fed's decision will have a significant impact on market sentiment and potentially trigger another rally. As the Bitcoin rally temporarily pauses, traders are cautious about the market's direction. The coming days will provide further clarity on the future trajectory of both the crypto market and the broader economy.
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