By Marcus Sotiriou, Analyst on the publicly listed digital asset dealer GlobalBlock (TSXV:BLOK).
Bitcoin and the crypto market noticed a major bounce yesterday, earlier than discovering resistance at $19,666 – the 2017 bull market high, a key resistance. Bitcoin stays beneath $20,000 for now as traders are very cautious forward of the Federal Reserve determination tomorrow, adopted by a information convention with Chair Jerome Powell.
The market is at present pricing in a likelihood of an 82% likelihood of a 75 foundation level charge hike, and a 18% likelihood of a 100 foundation level charge hike. As the possibility of a minimum of a 75 foundation level charge hike has been totally priced in by traders, I feel a 75 foundation level charge hike may very well be priced in, within the short-term. Nevertheless, central banks are very aggressive so a short-term rally could also be short-lived.
Along with the Federal Reserve determination tomorrow, there may be the Financial institution of Japan financial coverage determination and Financial institution of England rate of interest determination on Thursday, in addition to the US Convention Board main index – preliminary jobless claims. We’re due to this fact arrange for a really unstable week as traders acquire readability on the choices of central banks.