The cryptocurrency market is buzzing with anticipation as investors gear up for the upcoming Federal Open Market Committee (FOMC) meeting. Major financial institutions like JPMorgan and Goldman Sachs predict a possible interest rate cut, along with the potential end of the quantitative tightening (QT) program by the Federal Reserve. This shift has crypto experts suggesting that current low volatility might be an early precursor to significant price movements.
Bitcoin’s recent stability within a narrow range has garnered attention from blockchain specialist Maartunn, who highlights its decreased daily volatility, plummeting to 2% on October 21 and slightly increasing to 3% the following day. According to Maartunn, this calm period is a typical sign of impending price changes. This stagnation, experts argue, stems from investors waiting for clarity on these Fed policy decisions. In previous instances, low volatility phases after QT program conclusions have historically led to sharp price surges.
Satoshi Stacker, a market commentator, agrees with this sentiment, suggesting that ending the QT program will enhance global liquidity, ultimately impacting cryptocurrencies. A visual illustrating Bitcoin’s historical spikes post-QT program conclusion further illustrates this point.
The outlook for Bitcoin appears promising as it is expected to surpass the $111,000 mark by week’s end according to CryptoAppsy data. This comes with a significant growth rate of around 20% in its annual performance.
Prominent crypto analyst Michaël van de Poppe highlights a shift in investor behavior as expectations of monetary policy changes reflect in pricing. He predicts Bitcoin will achieve new highs by November, and this combined with the potential end of QT could propel Ethereum to $5,000, potentially doubling altcoin values at the same time.
While the market is currently subdued, experts remain optimistic about accelerated market dynamics as a result of upcoming policy changes. The crypto community eagerly awaits these developments, driven by hopes for considerable financial returns.