It's Wednesday. It's "rate-cut-day."
At 6 pm UTC, Jerome Powell (Fed Chair) will announce the Fed's decision. Currently, the market swings between a 25bps and 50bps rate cut.
As mentioned, I prefer (and advise) staying sidelined during such days. Volatility can be crazy and unpredictable. However, I will analyze the decision and give you a complete assessment in tomorrow's edition.
Bitcoin attempted to break out yesterday but faced an explicit rejection at 61k.
Currently, it’s hovering just above the $60k level. However, all eyes are on tonight’s crucial Fed meeting and the expected rate cut decision.
With such a high-impact event, we can expect volume to increase significantly and volatility to spike. As already mentioned, it’s nearly impossible to predict the direction of the move, as this will depend on various factors from the Fed’s commentary.
Given the uncertainty, it’s a good day to be cautious. If you’re trading, avoiding leverage might be wise, and the best strategy is to stay on the sidelines.