According To Experts Current Market Indicators Regarding Bitcoin Hints At Uncertain Gain

Bitcoin experts are indicating that the current signals of Bitcoin are pointing at the possibility of uncertain gains.

As of this writing, the Bitcoin options market continues to show clear-cut indicators of the possibility that uncertain gains might be on their way.

Even though some strategic analysts are making huge claims that the upcoming Fed meeting that is scheduled for Wednesday could shake the entire cryptocurrency, Bitcoin remained bullish.

On Monday, January 30, 2023, the 25% delta skew of BTC was at 4.44. As per the graph published by The Block. The graph also indicated that the current skew will last for 7 days.

The skew represents the natural bias of the price of BTC which is likely to remain high for quite some time.

The majority of the Bitcoin price experts are optimistic and suggest that investors should go with the call option because Bitcoin has shown remarkable price consistency in recent days.

What do put and Call Options Mean?

Investors often find it hard to understand what put and call options indicate.

The put option advises that the investors should consider selling the assets. However, it does not force investors to sell the assets at a predetermined price.

Talking the call option tells an investor that it’s time to buy an asset, however, it does not force investors to buy the asset at a predetermined price.

Buying and selling at the predetermined price can be profitable, but it can also be very risky. On the other hand, the market sentiment shows that investors are more inclined toward the call option.

As there is a very strong rumor that the Bitcoin price is likely to go high, investors are willing to buy Bitcoin at its current price so they can sell it later to make instant profits.

The Upcoming Fed Meeting Can Cause Crypto Blood Bath

Some experts are skeptical of the Bitcoin price rise, they also believe that despite the 25% skew shown by the Bitcoin graph, the upcoming Fed meeting is crucial.

It has been speculated that Wednesday’s fed meeting can turn the cryptocurrency market upside down and force investors to sell their tokens in hurry to avoid massive losses.

Some sources have revealed that the feds will talk about increasing the interest rate and the policy rate might go high by 25 bps.

This means that the feds are targeting the 4.75% range, this might not impact the market the big time, but this will surely reshape the interest rate outlook for the future.

For instance, this will leave the cryptocurrencies vulnerable to a series of interest rate hikes. And how long the interest rates will remain high or how long the feds will keep the interest rates at a minimum?

Experts do believe that the feds will increase the interest rate for now, however, these interest rates will drop in late 2023.

There are solid reasons for the feds to cut off the interest rate later in 2023 1) US inflation pressure will ease off by the end of 2023 and 2) the world’s economy might suffer another economic recession by the end of 2023.

So to support the U.S. economy feds have to cut off the interest rates late in 2023. On the other hand, economic experts have warned that Feds can take much tighter measures to ensure economic sustainability.

As of now, the Goldman Sachs U.S FCI is at its lowest since September last year. This can put Fed Chairman Jerome Powell under much pressure to take strict decisions and force the interest rate hike.

In case of an interest rate hike cryptocurrency market can be possessed by the intense bears once more.

Moving forward the situation might call for an interest rate hike at around 5%, if this happened this will send the price of USD and US bond yields higher.