Bitcoin, Ethereum, Solana, and XRP Anticipate Market Shifts as Fed’s Key Announcement Looms
As the Federal Reserve prepares to deliver its crucial policy decision today, crypto traders are eyeing potential volatility in major cryptocurrencies like Bitcoin, Ethereum, Solana, and XRP. According to current volatility measures, price swings are expected but not extreme.
The Volmex implied volatility indices reveal that Bitcoin (BTC) is projected to experience a 2.56% move, or about $2,470, based on a one-day annualized volatility of 49%. Meanwhile, Ethereum (ETH) shows a slightly larger expected move of 3.45%, with Solana (SOL) tracking a 4.3% potential price fluctuation.
For XRP, data from Deribit suggests an implied volatility of 77.98% for May 8, pointing to an anticipated move of 4.08%.
While crypto markets remain open 24/7, the calculation of volatility for these assets uses a 365-day year, unlike traditional markets which use a 252-day year.
The Fed’s decision, widely expected to keep interest rates unchanged, is unlikely to surprise the market. However, Fed Chair Jerome Powell’s post-announcement speech at 18:30 UTC will be closely monitored for any insights into future rate cuts or inflation management. Traders are bracing for any potential shifts in policy tone that could spark larger market movements.
