FED Decision May Have Limited Impact on Bitcoin's Price

The upcoming FED meeting has left the cryptocurrency market abuzz with speculation about interest rates and their potential impact on Bitcoin. While expectations are mixed, some analysts believe that the decision may have a limited effect on the price of BTC.

K33 Research's head, Vetle Lunde, suggests that the correlation between Bitcoin and Nasdaq has decreased significantly in recent years. This has led to increased divergence in price movements between the two assets, which could limit the impact of FED decisions on $BTC.

Lunde points out that Bitcoin continues to trade sideways with low volatility, reducing its reaction to macroeconomic developments. Michaël van de Poppe, another analyst, also believes that the rise in $BTC will continue after the FOMC meeting, citing the market's pricing of excessive fear ahead of the event.

The probability of a 25 basis point increase by the FED is priced at 31.5% according to CME FedWatchTool. This mixed scenario has left investors and analysts on high alert, awaiting the outcome of the meeting.