Next FOMC Will Set The Stage For Bitcoin And Crypto

QCP Capital predicts a potential sideways trend for Bitcoin and crypto market until March 22

According to QCP Capital’s market analysis, the next Federal Open Market Committee (FOMC) meeting of the U.S. Federal Reserve (Fed) on March 22nd will be the most important of the year. The trading firm expects this meeting to be trend-setting for the entire year, as the Fed will reveal where it plans to place the terminal rate in 2023 and whether it plans to cut rates in 2024. QCP Capital also anticipates a potential sideways trading environment in the medium term until the FOMC meeting.

DXY to remain the main indicator for Bitcoin and crypto market

QCP Capital predicts that the dollar index (DXY) will continue to lead the way for the Bitcoin and crypto market. The trading firm expects the DXY to rise in the longer term, which should put pressure on the prices of risk assets like Bitcoin due to the inverted correlation. QCP Capital also believes that the DXY and the S&P 500 are likely to be the biggest arguments for the return of a bear market, along with the crypto-intrinsic risks with Silvergate bank.

Market volatility expected as we approach the FOMC meeting

QCP Capital is currently observing a much flatter volatility curve than previous sell-offs, suggesting that the market expects a sideways trading environment in the medium term. However, the trading firm is positioning long vega in anticipation of some volatility as we approach the FOMC meeting at the end of the month. At press time, the Bitcoin price stood at $22,346, still digesting the crash during the opening trading hour in Hong Kong.

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