Potential Crypto Market Shifts Loom as Investors Eye Key Federal Decisions

This week, the crypto world is abuzz with anticipation as it focuses on the upcoming Federal Open Market Committee (FOMC) meeting. Major financial institutions like JPMorgan and Goldman Sachs predict that, in addition to a possible interest rate cut, the Federal Reserve might end its quantitative tightening program. In response, cryptocurrency experts argue that the current low volatility could be precursors to a noteworthy price movement.

Is the Market Entering a Quiet Phase?

Blockchain specialist Maartunn highlights Bitcoin‘s recent price steadiness confined within a tight range. According to CryptoQuant data, Bitcoin’s daily volatility plummeted to 2% on October 21 and slightly increased to 3% the following day. Maartunn describes this as a typical period of calm before significant changes, hinting at an upcoming major price change.

The stagnation, according to Maartunn, is due to investors awaiting the Fed’s policy cues. Historically, these low volatility phases lead to sharp price elevations. Market commentator Satoshi Stacker concurs, suggesting that concluding the QT program might enhance global liquidity, profoundly affecting cryptocurrencies. A shared visual further illustrates Bitcoin’s historical spikes post-QT program conclusions.

What Could November Bring for Bitcoin?

As recovery signs begin to emerge, Bitcoin appears set to surpass the $111,000 mark by week’s end. Data from CryptoAppsy shows the top cryptocurrency has risen by 0.53% over the past day and 4.85% over the last week, with an annual growth rate nearing 20%.

Prominent crypto analyst Michaël van de Poppe observes a shift in investor behavior, with expectations of monetary policy changes reflected in pricing. He anticipates Bitcoin will achieve new heights in November. Poppe predicts that a formal stop to QT will not only push Bitcoin up but also propel Ethereum to $5,000, potentially doubling altcoin values at the same time.

While the market currently appears subdued, experts remain hopeful for accelerated market dynamics spurred by impending policy shifts. The crypto community is eager, driven by the possibility of considerable financial returns.

Key takeaways are as follows:

• Bitcoin is experiencing reduced daily volatility, suggesting an imminent major price fluctuation.
• Market experts predict that ending the QT program could boost liquidity, influencing cryptocurrency prices.
• Bitcoin and Ethereum are expected to reach new milestones if the QT program ceases.
• Altcoins could see a significant increase in value alongside Bitcoin and Ethereum’s rise.

“Investors are pricing in potential monetary policy changes,” said Michaël van de Poppe. He believes this could lead Bitcoin to peak in November.