Could happen tomorrow with bitcoin ahead of new U.S. announcement

Expectations for the price of bitcoin (BTC) once again depend on U.S. monetary policy. Once again, eyes are on the Federal Reserve’s (Fed) interest rate announcement on Wednesday, November 2.

As happened this year, Fed’s moves to fight inflation have captured the market’s attention. And bitcoin is no exception, with famous reactions to these announcements.

For analysts at Arcane Research, the announcement scheduled for tomorrow “will likely lead to volatility in a highly correlated environment with equities,” continuing an increase in price movements we have experienced in recent days, such as which we reviewed on CryptoNews. However, it estimates a correlation with stocks that seems to be breaking down, as we reported Also.

In its most recent market report, Arcane Comments that this is most likely a Interest rate increase of 75 pointswith a probability of up to 86 percent. However, they argue that the probability of a shift to an easing policy has increased. And with it, the option of an interest rate increase of only 50 points.

However, whatever the particular move, Arcane Research estimates high volatility, but strength for bitcoin and the cryptocurrencies. In this regard, they point out that since the last announcement from the Fed both BTC and ether (ETH) have outperformed traditional financial markets..