Predictions for Price Fluctuations in Bitcoin, Ether, and Solana Ahead of the FOMC Rate Review

Anticipated volatility in the crypto market as the Federal Reserve approaches its rate decision.

What to Know:

• The Federal Open Market Committee (FOMC) is expected to announce its rate review, growth, inflation projections, and interest rate outlook, which could spark price fluctuations of 3% to 5% in bitcoin, ether, and solana.
• The central bank is likely to keep the benchmark borrowing cost unchanged while indicating the end of its extended quantitative tightening.

At 12:30 UTC, the bitcoin one-day implied volatility (IV) index indicated an annualized volatility of 63.32%, predicting a 24-hour price movement of 3.31%. Similarly, ether and solana showed expected price changes of 5.25% and 5.73% respectively.

Although these anticipated changes may be unsettling for equity or currency traders, they do not signify a significant shift in the crypto market norms. In essence, although the Fed’s decision is crucial, it is unlikely to cause immediate volatility surges.