Bitcoin may experience volatility throughout the week!

Bitcoin has been around for more than a century, but it has yet to gain a relatively large market cap. As a result, various news have a great impact on it. We often see that the market is affected by various positive or negative news. Due to various positive news we see the market and we see the price of Bitcoin increasing and on the other hand when any negative news comes in the market then we see the Bitcoin price committee. So different news can affect Bitcoin throughout the week. So those who are investors should be somewhat aware of this.

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Moreover we know that Bitcoin is famous for volatility. Occasionally we see this volatility on the price of Bitcoin. Bitcoin prices can fluctuate quite a bit throughout the week. So today I will discuss with you about this and why the market can go up and down. However, the Federal Open Market Committee (FOMC) is expected to release its minutes tomorrow. Depending on this, the market could go up and down as what they release as their minutes will shed more light on the central bank's views on monetary policy. Bitcoin and other risk-on assets typically move up and down depending on the Federal Reserve's interest rates, which we've seen over the past few days. After the jumbo rate cut, the price of Bitcoin increased significantly in the past few days.

Another Fed meeting is likely next month. If the Fed's Reserve interest rate comes in lower at next month's meeting, it will be positive for Bitcoin and the price of Bitcoin is expected to rise and that is what market participants are now expecting. If, on the other hand, the interest rate on fan reserves is high, the price of Bitcoin may fall. Therefore, there may be instability in the market around that time. Apart from the FOMC meetings, markets will also be keeping an eye on some important macro data, including the unadjusted Consumer Price Index (CPI) rate released on Thursday.

Another important point is that the Bureau of Labor Statistics will also release the Producer Price Index (PPI) and Jobless Claims. This important data will help gauge the strength of the US economy. As I said last week we had some positive news and that is that the number of Americans applying for unemployment benefits in the United States has increased. This shows that the labor market is starting to feel some pressure under the weight of higher interest rates. This was a positive news and due to which we saw a slight increase in the price of Bitcoin. However, the chances of a 50 basis point cut at the Federal Reserve meeting next month are slim for now. Very few businessmen agree with this. Because the US economy as it stands today is unlikely to see a recession in the near future and the Fed is in no rush to cut more jumbo rates.