The Bitcoin price has fallen by 4.7% since peaking at $71,231 yesterday, now hovering around $66,967. This decline marks a notable return of volatility in the market, driven by several critical factors. #1 Federal Reserve’s FOMC Meeting Anticipation The Bitcoin market seems to be in a risk-off mode ahead of tomorrow’s Federal Open Market Committee (FOMC) meeting on Wednesday, June 12th. The market’s sensitivity to macroeconomic indicators is on full display as stakeholders await the US Federal Reserve’s decision on interest rates and its economic projections. Current expectations suggest that the Fed will maintain the interest rates at a range of 5.25%-5.50%, but the market is bracing for the updated dot plot which is projected to adopt a more hawkish stance. The adjustment anticipated involves reducing the expected rate cuts in 2024 from three to two, with some speculating about the possibility of only one cut. This hawkish tilt in monetary policy projections is poised to influence investor behavior significantly, as higher interest rates typically dampen the appeal of non-yielding assets like cryptocurrencies. Adding to the uncertaint ..
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