Preparing for Powell'sDeclaration in the Cryptocurrency Sphere: Anticipation of Upsurge for Long Positions, Short Sellers Await Potential Drop
In the world of cryptocurrency, the price of Bitcoin is showing signs of potential volatility as short-term holders regain profitability and the Federal Open Market Committee (FOMC) prepares to make its decision on September 17, 2025.
The FOMC, under the leadership of Chairman Jerome Powell, is expected to announce a likely interest rate cut of 25 basis points in response to a weakening US labor market and persistent inflation. This decision has already created significant reactions in financial markets, including potential volatility in Bitcoin and the broader cryptocurrency market.
Bitcoin's current price stands at approximately $116,300, and on-chain data suggests that short-term holders are regaining profitability, which could lead to increased buying activity. However, if Bitcoin fails to maintain a cost basis above $111.8k-$114.2k post-FOMC, a "sell the news" correction may occur.
The recent FOMC decision and Chairman Powell's remarks could also contribute to market volatility. On September 16, Bitcoin ETFs saw a significant inflow of $292 million, marking seven consecutive days of net buying. This inflow, coupled with Bitcoin's proximity to the significant liquidity cluster at $117,000, could potentially stabilise the market.
However, escalating US-Venezuela tensions could amplify volatility in the cryptocurrency market. It's important to note that Ethereum ETFs experienced $61.74 million in outflows on an unspecified date, indicating a shift in investor sentiment towards Bitcoin.
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Stay tuned for more updates on the cryptocurrency market and its potential reactions to the FOMC decision and geopolitical events.
