• The Federal Reserve is likely to raise the interest rate by 25 bps on July 26th, and an 18% chance of further rate hikes in September.
• The European Central Bank is also expected to increase its interest rate by 25 bps during their meeting following the Federal Reserve’s.
• These anticipated increases are garnering significant attention, as it reflects strong holder conviction and a rapid shift in Bitcoin liquidity.
Anticipated Interest Rate Hikes
The Federal Reserve is highly likely to adjust the target rate upwards by 25 basis points (bps) at their meeting on July 26th, increasing the federal funds rate from 500-525 bps to 525-550 bps. There is also an 18% chance of another rate hike at the next meeting slated for September 20th. Meanwhile, the European Central Bank (ECB) is scheduled to deliver its decision a day after the Federal Reserve’s verdict; analysts predict that they will also increase their interest rates by 25 bps from 400-425 bps to 425-450 bps.
Probability of Increase
The probability of an increased interest rate at both these meetings is quite high; CME currently suggests a 99.8% likelihood for the Fed’s move and a 98% chance of success for ECB’s decision. This indicates that holders have conviction in these predicted adjustments, which has led to a rapid shift in Bitcoin liquidity observed in recent days.
Analysis of Value and Growth
Analysts have been closely studying Bitcoin’s decade-long journey and analyzing trends related to its value and growth over time. This resilient journey speaks volumes about its potential as an asset class, with many anticipating further hikes going into late summer due to this strong holder conviction observed recently .
Unpacking Trading Volatility
In addition to understanding Bitcoin’s value and growth over time, researchers have been examining trading volatility trends across different exchanges. They are attempting to determine whether any patterns exist or if there has been any sudden change since the introduction of futures markets last year .
Evolution Into Stablecoin
Finally, experts are discussing how Bitcoin has evolved into a stablecoin over time due to its resilient nature as well as stronger holder conviction leading up towards summer months . They anticipate that this new identity could open up more opportunities for investors and bring even more liquidity into this market moving forward .