Bitcoin rose above $117,000 during early trading hours today, at its strongest level since early August, as traders placed Federal Reserve rate decisions on the table.
The results of the Federal Open Market Committee (FOMC) meeting scheduled for later today define the risky situation for the year.
Market expectations for easy monetary policy have fueled the latest momentum.
Softer US inflation measurements have made the futures market fully priced with a quarter-point rate cut, according to the Bitise Report.
As a result, the loosely-conditioned outlook stimulates the crypto market and highlights a “return to slightly bullish sentiment” as the market’s risk appetite becomes more clear.
This position confirms the position of Santimento, a blockchain analytics platform.
Santiment said bullish commentary now accounts for 64% of all crypto discussions.
Furthermore, the flow of Stablecoin into exchange also indicates that actual capital is on standby to capitalize on market movements.
Cryptoquant analyst Axel Adler reported that approximately $9 billion worth of Stablecoins had joined the exchange within 36 hours of the imminent Fed meeting. This suggests that traders are ready to act quickly in the announcement.
Be careful
However, despite the current bullish position, Santimento warned that the market is often against the retail consensus. This means that excessive confidence can expose traders when the Fed makes surprising decisions.
Blockchain analytics firm GlassNode noted that the derivatives market reflects the same tensions that options traders are actively supporting price fluctuations.
According to the company:
“Options traders are rapidly purchasing options for hedges or positions of volatility spikes, reflecting market uncertainties and high movement expectations.”
With this in mind, Timothy Misir, BRN’s Head of Research, said Encryption That “Bitcoin stands at hinge points.”
According to him:
“A sustained push of $116,300 and $117,000 on Fed-driven liquidity could potentially reduce the rock on the higher band to $120,000. But the setup is delicate.