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Data Suggests Bitcoin Gets Chaotic During FOMC Meetings

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Bitcoin Volatility
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Bitcoin and other cryptocurrencies in the market have had an interesting week-and-a-half. From the CPI report to the completion of the Ethereum Merge, it has been a rollercoaster of volatile activity across the market. Even with this, the market is still not done with its big events. The FOMC meeting is held on Wednesday, which, like in the past, promises unpredictable movements for the crypto markets.

Expect Volatility For Bitcoin

The FOMC meeting has always triggered volatility across not just the crypto markets but various financial markets. Bitcoin’s reaction to the FOMC meeting has also gotten more prominent with the increased correlation with the stock and macro markets. Given this, any FOMC meeting is expected to have a significant impact on the crypto market. 

This is no different from the FOMC meeting that is happening on Tuesday. Previously, the FOMC meeting hours have been very volatile in the space as the market awaits the results of the meeting. As such, it is expected that Wednesday will see a lot of volatility, especially during meeting hours. More specifically, volatility is expected to hit its peak between 17:00-21:00 UTC as had been observed during previous meetings.

Volatility expected during FOMC meeting | Source: Arcane Research

Naturally, bitcoin’s price will respond to the equity indexes during this time and will tend to move in tandem with it. So while investors keep an eye on the crypto market, it will be prudent to also keep an eye on the macro markets during this time as well.

High Swings In Crypto

The reaction of bitcoin and other cryptocurrencies can vary during this time but the wild swings are to be expected. This time around, the volatility is also expected to be very high because there is uncertainty across the markets regarding if there will be further rate hikes or not.

It actually gives an idea of the importance of the FOMC meeting to different financial markets and now the crypto market, as it becomes a larger contender. Presently, there are reports of an expected rate hike of 100bps. The market has reacted to this by pricing a 20% chance of such a hike.

Bitcoin Price Chart From Tradingview.com

BTC remains below $20,000 | Source: BTCUSD on TradingView.com

Interestingly, the volatility from the FOMC meeting does not seem to last beyond the end of the meeting. In some cases, it has lasted a few hours more, but by the next day, the volatility usually settles and normalizes.

So, in the end, the volatility from this meeting does not command much relevance over a longer period of time. It often acts as a clue for traders regarding how trades should be constructed during this time. If rate hikes continue though, bitcoin’s price may break below $18,000 for the second time this year.

Featured image from Yahoo Money, charts from Arcane Research and TradingView.com

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Top Crypto Price Gainers of the Past Hour

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Top 3 Privacy Coins To Consider This June 2022 For Investors
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  • Top 3 crypto price gainers are RSR, MKR, EGLD.
  • According to CoinMarketCap, RSR has gained by 6.70% during the last 24 hours.

For the past few months, the global cryptocurrency market has witnessed a tremendous downfall due to several reasons. The market cap value has declined by more than 70% from 3 trillion, which was recorded in November 2021. Currently the MarketCap is  $927.26B. Also the top cryptocurrencies, Bitcoin and Ethereum are down today. 

Let’s examine the top 3 crypto price gainers of the past hour.

Price chart of top crypto gainers (Source : CMC)

Reserve Rights (RSR)

The Reserve ecosystem’s volatile cryptocurrency is the RSR. Reserve Rights is a stablecoin platform with two tokens. The Reserve stablecoin (RSV), which is governed by a number of assets managed by smart contracts, is added by the RSR’s dual token arrangement. The Reserve Rights token (RSR), the second token, is used to maintain the RSV’s price at $1 through a system of arbitrage opportunities. 

The current price of RSR is $0.01018 with a 24 hour trading volume of $16,155,126. In the past 24 hours, RSR has increased by 6.70% as per CoinMarketcap. 

Maker (MKR)

The Maker protocol, which is built on the Ethereum blockchain, has a governance token called Maker (MKR). MKR was developed by makerDAO and released in 2015. Maker protocol and MakerDAO manage and provide the smart contracts ecosystem for DAI, one of the most popular stablecoins.

According to CoinMarketcap, MKR currently trades for $776.29 with a $42,438,021 24 hour trading volume. MKR has gained 3.74% during the past 24 hours.

Elrond (EGLD)

With a focus on scalability and cheap transaction fees, Elrond is a piece of software that tries to motivate a distributed network of computers to run a smart contract platform. It was established in 2017 and is supported by Elrond Network, a business based in Malta committed to the development of the project. The EGLD coin, which Elrond uses to communicate with applications, send transactions, and reward network actors, is the platform’s own cryptocurrency.

At the time of writing EGLD is trading at $49.15 with a 24 hour trading volume of $37,296,069. In the last 24 hour EGLD has increased by 2.25% as per CMC.

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Sega To Build First Blockchain Based Games

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Sega To Build First Blockchain Based Games
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