Bitcoin and Ethereum Price Swings: Volatility Predictions for Fed Day

Bitcoin and Ethereum- Will Fed Day Spark Major Crypto Price Movements?

Bitcoin and Ethereum– As Fed day approaches, traders are closely monitoring the potential volatility triggered by this key event. While major tokens may experience price swings, Volmex’s implied volatility indices suggest that no extreme movements are expected.

According to TradingView data, Volmex’s annualized one-day Bitcoin implied volatility index (BVIV) stands at 49%, predicting a 2.56% 24-hour price swing. This means Bitcoin (BTC), trading at around $96,500, could see a price fluctuation of approximately $2,470 in either direction.

The expected daily volatility is calculated by dividing the annualized percentage by the square root of 365, as the digital assets market operates around the clock. In traditional markets, the annual-to-daily conversion uses the square root of 252 days.

Ethereum (ETH) has a higher implied volatility, with an annualized one-day volatility of 66%, suggesting a 3.45% 24-hour price movement. Solana (SOL), according to Volmex’s one-day implied volatility index, may see a 4.3% price swing in the next 24 hours.

XRP: Gauging Volatility Through Deribit Options

While Volmex does not provide volatility indices for XRP, forward implied volatility (IV) can be gauged through options listed on Deribit. For May 8, the forward IV for XRP was 77.98%, which implies a one-day expected move of 4.08%.

The Federal Reserve will announce its rate decision at 18:00 UTC, followed by a press conference with chairman Jerome Powell at 18:30 UTC. Market participants will be eager to see how the Fed’s decision might influence cryptocurrency volatility.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.