Here’s Why Bitcoin Might Experience Volatility During This Week

With the Bitcoin (BTC) price hovering above the $63,000 level, cryptocurrency traders and investors are bracing for a potentially volatile week. 

On Wednesday, the Federal Open Market Committee (FOMC) is expected to publish its minutes, which will shed more light on the central bank's views on monetary policy. 

Bitcoin and other risk-on assets have rallied substantially following the Federal Reserve's jumbo rate cut that was implemented last month.  

Earlier this month, the price of the original cryptocurrency topped the $66,000 mark.   

Market participants now expect the Fed to announce another rate cut after its November meeting. 

Apart from the FOMC meetings, markets will also keep a close eye on some critical macro data, including the unadjusted consumer price index (CPI) rate, which will be released on Thursday. 

The Bureau of Labor Statistics will also publish the producer price index (PPI) and jobless claims. This critical data will help to gauge the strength of the US economy. 

Last week, it was reported that there was an uptick in the number of Americans who had applied for unemployment benefits. This shows that the labor market might have started experiencing some strain under the weight of higher interest rates.   

However, job openings actually managed to rebound in August, which was treated as a sign of a rather resilient jobs market. 

The odds of a 50 basis point cut in November are rather slim for now, with only 7% of traders betting on such a possibility.  

The American economy is highly unlikely to enter a recession in the near future. This is why the Fed is not going to rush to implement more jumbo rate cuts.