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Analysis: Interplay of Fed Policy Expectations and Oil Price Factors, Bitcoin May Maintain Volatile Pattern
According to market expectations, the Federal Reserve is likely to keep the benchmark interest rate unchanged within the 3.5%-3.75% range. Market focus has shifted to growth and inflation prospects, as well as the statements made by Fed Chair Jerome Powell during the post-meeting press conference. Fabian Dori, Chief Investment Officer at Sygnum Bank, stated that investors are closely watching whether the interest rate dot plot will reduce expectations for rate cuts and whether Powell will emphasize the risks of financial conditions easing too quickly, which could reinforce the market's expectation of "higher rates for longer." Bitcoin is currently at a critical juncture, with repeated failures to firmly hold above $75,000 indicating a degree of caution and mean-reversion characteristics. If the Federal Reserve expresses concern about oil price increases triggered by geopolitical conflicts and their inflationary impact, and hints at a slower pace of rate cuts, Bitcoin's price may continue to be constrained below $75,000, extending its pattern of volatile consolidation. (CoinDesk)
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