A pseudonymous cryptocurrency trader shared his analysis of Bitcoin's (CRYPTO: BTC) potential next move ahead of the upcoming Federal Open Market Committee (FOMC) meeting.
What Happened: Trader Seth suggested that Bitcoin might dip to eliminate long positions before rising to challenge short positions. He also added that he does not expect significant gains from his long positions until the FOMC meeting on June 12.
#BTC can swipe the low taking out the Longs before Up taking out the short.
— Seth (@seth_fin) June 10, 2024
However I don't expect much from my Longs until #FOMC on the 12th June. 99.4% right now we get another Pause. But it can still be very bullish because of what the FED say.
The Market is now anticipating... pic.twitter.com/xTyRd8P5wH
The trader predicted a 99.4% chance of another pause in rate hikes, which he believes could still be bullish depending on the Federal Reserve's statements.
According to Seth, the market is currently expecting higher rates for a longer period, making it difficult to disappoint investors. He emphasized the importance of understanding market anticipation, stating that if the market expects rate cuts and the Fed pauses or hikes, it could lead to negative outcomes.
Also Read: Bitcoin, Ethereum, Dogecoin Headed For 'Complete Sideways' Until CPI, FOMC Data Next Wednesday, Says Trader
Why It Matters: Seth's insights come at a crucial time as the market eagerly awaits the FOMC's decision. He highlighted the challenges of a rate hike, citing the $34.7 trillion U.S. national debt and the annual interest payment of $1.7 trillion, along with rising unemployment rates.
The anticipation of higher rates for a longer period has significant implications for investors and the broader economy.
In the last week, another trader predicted minimal price movement in the coming days ahead of significant economic data. He stated, "Complete sideways is expected and maybe even a small drop in the time between."
Price Action: In the past 24 hours, BTC is trading 0.18% higher.
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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