Leveraged bets on FOMC meeting ‘guaranteed recipe to lose money’ — Trader

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A crypto trader warns that going dense connected leverage earlier the monthly United States involvement complaint determination is simply a surefire mode to suffer wealth successful crypto trading.

After the Federal Reserve’s statement confirmed the US cardinal slope intends to leave involvement rates unchanged successful its people scope betwixt 4.25% to 4.5%, Bitcoin’s terms hardly moved, arsenic the marketplace had already wide expected nary alteration successful the involvement rate.

However, aft Fed seat Jerome Powell said the probability of a recession is “not high,” contempt autarkic economists raising the likelihood of one, the wide crypto marketplace saw an upswing, leaving traders betting connected the downside caught disconnected guard.

“A guaranteed look to suffer money,” MN Trading Capital laminitis Michael van de Poppe said successful a March 19 X post.

CoinGlass data, which tracks a 12-hour window, shows $188.77 cardinal was liquidated from the crypto market, with $127.80 cardinal of that being abbreviated positions.

Bitcoin (BTC) surged 3.84% successful six hours aft Powell’s code to deed $87,427 earlier pulling backmost to $85,760 by publication. Ether (ETH) climbed 2.27% successful the aforesaid period, portion XRP (XRP) gained 2.40%, adding to its 7.50% rally starring into the involvement complaint announcement, according to CoinMarketCap data.

“The archetypal connection isn’t arsenic important. The words from J. Powell are,” van de Poppe said, adding, “That’s what apt defines Bitcoin terms enactment for the coming period.”

Crypto expert says the Bitcoin rally volition not proceed successful the adjacent term

Crypto trading relationship BitcoinHyper said, “FOMC gathering made Bitcoin pump straight into the large liquidation level.”

“Even if BTC goes higher, this is not a bully level to look for caller agelong positions,” the trading relationship said.

Matt Mena, crypto probe strategist astatine 21Shares, made a akin forecast, saying that portion the US Federal Reserve’s “dovish shift” connected involvement rates could springiness Bitcoin a short-term boost, it whitethorn not beryllium sustainable.

“Bitcoin is apt to stay successful consolidation mode until a wide catalyst emerges,” Mena said. “Looking further ahead, the broader macro situation remains supportive of a bullish lawsuit for BTC,” Mena said successful a connection viewed by Cointelegraph.

According to Powell, the median forecast from FOMC members is that involvement rates volition beryllium astatine 3.9% astatine the extremity of 2025 and 3.4% astatine the extremity of 2026.

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This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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