Bitcoin volatility set to intensify as Fed, BOJ decisions loom

  • Bitcoin dropped to $76,046 before rebounding to $79,890 on Sept. 11.
  • Bitcoin gained 5.05% in about 90 minutes during the intraday reversal.
  • Federal Reserve and Bank of Japan policy decisions are scheduled back-to-back.

Bitcoin fell to $76,046 on Sept. 11 before rallying 5.05% in about 90 minutes to $79,890, a move that triggered liquidations among both long and short traders. The cryptocurrency then consolidated over the weekend between $76,500 and $77,500 and later broke above that range, although its ability to hold the advance remained uncertain. The coming week features back-to-back policy decisions from the Federal Reserve and the Bank of Japan. Markets assign an 85% probability to a rate hike, while the final summary cited an 86.5% probability, and a 1.25% BOJ increase is also expected. XWIN Japan wrote on CryptoQuant that the key issue is how hawkish the two central banks sound after their decisions. Higher U.S. yields and a stronger yen could tighten liquidity and prompt investors to reduce crypto risk. CryptoQuant data showed that bearish positioning in Binance funding rates earlier this year helped fuel Bitcoin's rally to $82,850 in May. Analyst Darkfost said such bearish consensus has often coincided with the end of a Bitcoin correction, but the subsequent recovery in funding rates means renewed optimism now requires steady spot demand. Monthly CVD (cumulative volume delta) data from analyst Joao Wedson showed September was dominated by sellers. That reading is not automatically bearish: if Bitcoin holds supports such as $76,000 while monthly CVD remains deeply negative, passive limit-order buying would indicate that aggressive selling has been absorbed. Overall, Bitcoin faces a potentially volatile week, with continued recovery dependent on stronger buying pressure.

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Bitcoin volatility set to intensify as Fed, BOJ decisions loom - CoinPost Terminal