The Federal Open Market Committee’s upcoming rate review could trigger 3% to 5% price swings in Bitcoin, Ether, and Solana, according to Volmex’s volatility indices. Bitcoin is expected to see a 3.31% movement, while Ether and Solana may experience swings of 5.25% and 5.73%. The central bank plans to maintain its borrowing rate and signal an end to quantitative tightening.

The Federal Open Market Committee (FOMC) is anticipated to announce its rate review, along with projections for economic growth, inflation, and interest rates, which may lead to price fluctuations of 3% to 5% in key cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Solana (SOL). According to data from Volmex, this volatility is projected based on one-day implied volatility indices associated with these cryptocurrencies.

As the FOMC prepares to disclose its findings, the one-day implied volatility index for Bitcoin indicates an annualized volatility of 63.32%, suggesting an expected price movement of approximately 3.31% within 24 hours. Similarly, Ether and Solana’s volatility indices project daily price swings of 5.25% and 5.73%, respectively. These potential fluctuations are a typical occurrence in the cryptocurrency market and do not significantly deviate from past patterns.

While equity and currency traders might view these figures as alarming, they signify the usual volatility inherent in the crypto space. The FOMC’s decisions are essential but are not expected to cause an immediate surge in market volatility. The central bank is likely to maintain its benchmark borrowing rate and indicate an end to its extended quantitative tightening policies, although market improvements might be dampened by expectations of stagflation as noted in economic projections.

In summary, the forthcoming FOMC rate decision is likely to prompt moderate price fluctuations of 3% to 5% in Bitcoin, Ether, and Solana. Despite potential concerns from equity traders, such volatility aligns with the regular patterns of the cryptocurrency market. The central bank’s intentions to keep rates unchanged while concluding quantitative tightening will be pivotal but should not lead to a dramatic volatility spike.

Original Source: www.coindesk.com

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