Bitcoin Price Prediction: BTC Under $27K amid Fed's Stance, Options Expiry, & ETF Awaits
Bitcoin (BTC) was unable to maintain its upward rally from the previous week and remained below the $27,000 mark on Monday.
In fact, the overall cryptocurrency market was valued at $1.04 trillion at the time of this report, indicating a 1.08% drop in the past 24 hours.
However, this dip came in response to the US Federal Reserve's recent hawkish position during its September meeting, which suggested a rate hike and a sustained period of higher interest rates in the near future.
It's important to note that the crypto market is currently experiencing a bearish trend, especially after the Federal Reserve's recent statements. Bitcoin (BTC) has seen a 1.4% decline since Monday and is now trading below the $26,300 mark.
Technically, the $26,000 support level holds significant importance because if it fails to sustain, it may trigger further selling pressure for BTC.
Additionally, the market is anticipating increased volatility for BTC as $3 billion worth of Bitcoin options are set to expire on September 29th.
It's important to note that the losses in BTC might not last long as there will be approximately $3 billion worth of Bitcoin options and $1.8 billion in Ether options due to expire on September 29th.
This event can cause more trading and price turbulence, similar to traditional finance. However, the Bitcoin Volatility Index has recently shown a slight increase, indicating more dynamic market conditions.
As we know, options expiries often lead to significant trading activity, which may affect prices. As a result, institutional investors will use advanced strategies to manage volatility, which could impact Bitcoin's value.
Therefore, we are uncertain about the impact of the options expiry on the BTC price, which could be both
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