Crypto Rollercoaster: Buckle Up for FOMC Rate Decision! 🎢💰

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Crypto Rollercoaster: Buckle Up for FOMC Rate Decision! 🎢💰

What to know:

  • So, the Federal Open Market Committee is about to drop some news. You know, the usual rate review, growth, inflation projections, and interest rate forecast. And guess what? This could lead to a thrilling 3% to 5% price swing in bitcoin, ether, and solana. 🎉
  • Oh, and the central bank is expected to keep the benchmark borrowing cost steady. Shocking, right? They might even signal an end to their never-ending quantitative tightening program. Who knew? 🙄

Now, the FOMC, which is basically the U.S. Federal Reserve’s decision-making squad, is set to unveil its rate review later today. You know, just casually dropping growth and inflation projections along with the interest rate forecast. No big deal.

This highly-anticipated event is likely to stir up some crypto market chaos, leading to those delightful 3% to 5% price swings in bitcoin (BTC), ether (ETH), and solana (SOL). Thanks, Volmex, for the one-day implied volatility indices. We really needed that! 🙃

At 12:30 UTC, the bitcoin one-day IV index (BVIV) was like, “Hey, expect an annualized volatility of 63.32%!” That translates to a thrilling 24-hour price swing of 3.31%. Just divide the annualized figure by the square root of 365. Easy peasy, right? 🤷‍♂️

Ether and solana are also getting in on the action with volatility indices suggesting 24-hour price swings of 5.25% and 5.73%, respectively. Because why not? Let’s keep everyone on their toes!

Now, these numbers might send shivers down the spine of equity or currency traders, but let’s be real—they don’t represent anything out of the ordinary in the crypto world. The Fed event is pivotal, but it’s not like we’re about to witness a volatility explosion. Calm down, folks! 😅

In the end, the central bank is expected to keep things steady with the benchmark borrowing cost while hinting at the end of their prolonged quantitative tightening saga. But don’t get too excited; gains in risk assets might be dampened by a potential stagflationary adjustment in the economic projections summary. Just another day in paradise! 🌴

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2025-03-19 16:18