5 Key Points to Note in Bitcoin This Week: FOMC Convenes, Reducing the ‘Danger Zone’ by Half

Bitcoin (BTC) is beginning the week in recovery mode following a highly volatile weekend that resulted in significant losses. The price of BTC is struggling to regain its previous all-time highs after sustained selling pressure. This week, both the cryptocurrency and risk assets are awaiting cues from the United States Federal Reserve as they battle against inflationary forces. BTC/USD is currently within a critical zone that must be reclaimed in order for price discovery to continue. With Bitcoin just one month away from its next block subsidy halving, there is speculation that it could experience a classic pre-halving retracement. Despite the recent setback, Bitcoin managed to achieve its second-highest weekly close ever. Liquidity has been affected by the recent market flush, resulting in a reset of open interest and funding rates. Bitcoin miners are on track to enjoy their final month of 6.25 BTC block subsidies before the upcoming halving. The debate over how the halving will impact BTC price behavior continues, with some suggesting that it could reach a new all-time high sooner than previous cycles. However, there is a possibility that Bitcoin may follow the classic pattern of a lower price followed by a higher price around the time of the halving. This week, all eyes are on the Federal Reserve’s next decision on interest rates and the accompanying commentary from Chair Jerome Powell. The market is not expecting any surprises, as persistent inflation has eliminated the possibility of a rate cut. Bitcoin sentiment remains in the “extreme greed” zone, but there has been an increase in profit-taking from long-term holders and selling by Bitcoin miners. It is important to note that this article does not contain investment advice or recommendations, and readers should conduct their own research before making any decisions.