According to CoinDesk, the low volatility in bitcoin (BTC) is expected to continue after Wednesday's Federal Reserve (Fed) rate decision, as some crypto traders believe the central bank will maintain its data-dependent stance and offer no surprises to the market. The Fed is set to announce the rate decision on Wednesday at 14:00 ET, followed by a press conference with Chairman Jerome Powell thirty minutes later. Rates traders see a near 100% chance of the Fed keeping rates steady on Wednesday.

Greg Magadini, director of derivatives at Amberdata, said in a note to clients on Monday that the Fed's data-dependent approach and signaling of the ability to 'hold rates higher for longer' could make the meeting a low volatility event. Bitcoin options expiring on Friday, which capture the Fed and Bank of Japan (BOJ) meetings, indicate these rate decisions could be non-events. Markus Thielen, head of research and strategy at crypto services provider Matrixport, said that based on Bitcoin options market pricing, traders expect BTC to only move by 2.8% this Friday.