The Federal Open Market Committee (FOMC), the Monetary Policies Formulation Agency of the United States Federal Reserve, is scheduled to publish its rate review later in the day, together with the projections of growth and inflation and the prognosis of interest rates.
It is likely that the widely seen event will generate a volatility of the cryptography market, which stimulates 3% to 5% of price swings in Bitcoin (BTC), Ethher (ETH) and Solana (Sun). That is the message of the implicit volatility indices of a Volmex day linked to BTC, ETH and Sol.
At 12:30 UTC, the one day IV index of Bitcoin (Bvvvv) pointed out an annualized volatility of 63.32%, equivalent to an expected price change of 24 hours of 3.31%. The daily movement is calculated by dividing the annualized figure by the square root of 365, the total number of negotiation days in a year.
Similarly, Ether and Solana’s volatility indices suggested 24 -hour price changes of 5.25% and 5.73%, respectively.
These figures can be terrifying for capital or currency merchants, but do not represent an important deviation of normal in the cryptography market. In other words, it is unlikely that the Fed event, even if it is fundamental, will result in an explosion of immediate volatility.
It is widely expected that the Central Bank maintains the cost of stable reference loans, while indicating an end to its prolonged quantitive adjustment program. However, earnings in risk assets can be attenuated by a possible staplation adjustment in the summary of economic projections.
