Trump-Warsh Rate Clash Sparks Bitcoin Volatility Ahead of FOMC Meeting
The Bitcoin price has been experiencing volatile moves ahead of the Federal Open Market Committee (FOMC) meeting on September 15-16. According to data from the CME FedWatch Tool, 86.5% of investors expect the Fed to hike rates by 25 basis points. However, President Trump wants the Fed to cut rates instead.
Goldman Sachs notes that Federal Reserve chair Kevin Warsh will abide by market expectations, which would put him at odds with President Trump if he hikes rates. On-chain data from Santiment suggests that investors are de-risking ahead of the rate decision, with Bitcoin's open interest dropping 13.5% since September 3.
The trading volumes for Bitcoin have also increased by 44%, reaching $18.97 billion as of September 11. Despite these signs of caution, the Bitcoin price has remained relatively stable, up 1.52% to $77.953 at the time of writing.