Bitcoin traders brace for Fed, options expiry as BTC price clings to $47K
It's an end-of-month showdown for potential Bitcoin price triggers Friday as the Federal Reserve takes to the international stage.
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Market Update
Bitcoin ( BTC ) hovered near $47,000 on Aug. 27 as traders took no chances on the day of the Federal Reserve's Jackson Hole summit.
End-of-month cold feet for Bitcoin traders
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD fluctuating in a range centered on $47,000 during Friday.
The past 24 hours saw little action up or down for Bitcoin as market participants awaited cues from both the Fed and the end-of-month options expiry event, this time worth some $2 billion .
"Not a very strong reaction at the moment," trader and analyst Rekt Capital commented on price action overnight.
"A Daily Close above the high-$47000s would be a positive sign of strength however."
In the event, a higher close failed to materialize, with $50,000 still remaining unchallenged after Bitcoin lost the level earlier in the week.
Cointelegraph contributor Michaël van de Poppe likewise stuck to his previous forecasts , these involving a BTC support zone around $44,000.
"This idea on Bitcoin is still my primary vision," he tweeted .
Options expiries tend to generate more fear than genuine selling pressure, with BTC price action often shrugging off the events themselves. Open interest totalled $9.19 billion Friday, a three-month high.
Buzzword "tapering"
As Cointelegraph reported , the Fed's virtual Jackson Hole event is tipped to shed light on future economic policy changes tied to the Coronavirus pandemic.
Asset purchases may be scaled back, a mechanism known as tapering, in what could change the mood among traditional assets as the S&P 500 trades at all-time highs.
Any hints about inflation policy may also serve to boost alternative asset demand. The U.S. dollar gained in the run-up to the Fed's debut, traditionally a point of friction for Bitcoin.
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