By Marcus Soterio, analyst A publicly listed digital asset broker GlobalBlock (TSXV: Block).
Bitcoin and the crypto market made significant gains yesterday before meeting resistance at $19,666 – the high, key resistance of the 2017 bull market. Bitcoin remains below $20,000 as investors are cautious ahead of the Federal Reserve’s decision tomorrow, which will be followed by a news conference with Chairman Jerome Powell.
The market currently has an 82% chance of a 75 basis point rally and an 18% chance of a 100 basis point rally. As the possibility of at least 75 basis points price increase is fully sold by investors, I think 75 basis points price can be appreciated in short term. However, the short-term rally may be short-lived because central banks are very aggressive.
In addition to the Federal Reserve’s decision tomorrow, there are the Bank of Japan’s monetary policy decision and the Bank of England’s interest rate decision on Thursday, as well as the US Conference Board’s leading index – initial unemployment questions. So we are set for a very volatile week as investors gain clarity on central bank decisions.