Pay Attention to Bitcoin and Ethereum Before the FED Decision: BTC Could Fluctuate by 2,500 Dollars! - Coin Bulletin

On the day the Central Bank of the United States announces its (Fed) interest rate decision, sharp short-term movements may be seen in the prices of Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP.

Today, all eyes will be on the Fed's interest rate decision. While no change in the Fed's policy rate is expected, the markets will closely monitor the messages that Fed Chairman Jerome Powell will provide about the economy. During the announcements, there may be sudden fluctuations in the prices of major cryptocurrencies.

According to Volmex's data, which makes forward volatility predictions, Bitcoin's (BTC) annualized daily implied volatility is at the level of (implied volatility) %49. This rate implies an expected daily movement of approximately %2.56, or 2,470 dollars, in the price of Bitcoin. Bitcoin is currently trading at around 96,500 dollars.

In Ethereum, (ETH) the situation seems to be a bit more active. The implied volatility of ETH is at 66% level, indicating that the price of Ethereum could fluctuate by approximately around 3.45% today. The expectation of volatility in the SOL price is at 4.3% level, while the daily volatility of XRP is found to be around 4.08% according to the data calculated through the derivatives exchange Deribit.

Powell's statements are critical

Following the Fed's announcement of its interest rate decision, Powell's comments on the economy during the upcoming press conference could trigger market movements. In particular, comments about a possible interest rate cut in June or the economic uncertainties created by trade wars could increase volatility in cryptocurrencies. Therefore, investors will be closely monitoring the messages that will be announced today.