Bitcoin experienced notable volatility as Wall Street opened on July 31, with markets on edge due to upcoming U.S. macroeconomic events and the end-of-month close.
According to Cointelegraph Markets Pro and TradingView data, Bitcoin reached daily highs of $66,814 on Bitstamp, anticipating the Federal Reserve’s decision on interest rates.
While the CME Group’s FedWatch Tool suggests that the Federal Open Market Committee (FOMC) is unlikely to change rates until September, traders are focused on comments from Fed Chair Jerome Powell.
“We anticipate increased volatility ahead of tonight’s FOMC.
“We do not expect a cut and place higher importance on the statement and Powell’s presser after,” trading firm QCP Capital noted in a bulletin to its Telegram subscribers.
The firm expects a rate cut in both September and December, but warns that any deviation from this expectation could trigger risk-off movements across all asset classes, including cryptocurrencies.
European economic data further underscored potential challenges, with eurozone inflation rising to 2.6%, surpassing the expected 2.5%.
“Core inflation in Europe hit 2.9%, above expectations of 2.8%,” The Kobeissi Letter commented on X, highlighting concerns about rising inflation in the region.
READ MORE: Kamala Harris Considering Michigan Senator Gary Peters as Potential 2024 Running Mate, Sources Say
Amid these macroeconomic developments, major technology stocks faced pressure, with recent earnings reports failing to boost market sentiment.
Keith Alan, co-founder of trading resource Material Indicators, expressed caution, noting the potential for increased volatility as Bitcoin approached its monthly candle close.
He pointed out the significance of the 21-week simple moving average (SMA) at $65,700 as a critical support level.
“Losing the 21-Week MA would open the door to fill some CME Gaps, but at the moment we do have some bid support laddered in the $63k – $65k range,” Alan wrote, emphasizing market anticipation for Powell’s remarks and the monthly close.
Monitoring resource CoinGlass indicated rising buy liquidity around $65,500. Trader Mark Cullen added, “I was expecting Bitcoin to provide us with a bit more of a bounce yesterday, but ultimately I’m still looking for that 63k range low to get swept,” anticipating further volatility with the FOMC rate decision approaching.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
