The eyes of Bitcoin and altcoin investors are on this week’s Federal Open Market Committee (FOMC) meeting. Major banks like JPMorgan and Goldman Sachs anticipate that alongside a potential rate cut, the Fed may conclude its quantitative tightening (QT) program. In the crypto market, analysts argue that dwindling volatility signals an impending significant price movement.
Navigating the Calm Before the Storm
Blockchain analyst Maartunn has identified Bitcoin’s recent price stabilization within a narrow range. According to CryptoQuant data, daily volatility fell to 2% on October 21 and 3% on October 22. The analyst suggests this is a classic case of calm before the storm, indicating an imminent substantial price shift.
Maartunn attributes the market’s stagnation to investors waiting for policy signals from the Fed. He notes that periods of low volatility often precede sharp price surges. Similarly, market commentator Satoshi Stacker predicts that ending the QT program could boost global liquidity, significantly impacting crypto markets. A shared graphic illustrates Bitcoin’s historical price surges following QT program terminations.
Anticipating New Highs by November
As signs of recovery surface in the market, Bitcoin is poised to close the week above the $111,000 threshold. According to CryptoAppsy, the leading cryptocurrency has appreciated 0.53% over the past 24 hours and 4.85% over the past week, with a year-to-date increase nearing 20%.
Renowned analyst Michaël van de Poppe observes that investors have begun to price in a potential shift in monetary policy, forecasting that Bitcoin may reach a new peak in November. Poppe speculates that an official halt to QT could elevate not only the leading cryptocurrency but also Ethereum to the $5,000 mark. Additionally, he notes that altcoins might double in value during this period.
Overall, while the crypto market exhibits temporary quietude, experts express optimism for accelerated movements catalyzed by potential policy changes. The anticipation in the crypto community is palpable, highlighting the potential for substantial financial gains.