Fed Expectations Fuel Market Outlook for Bitcoin, Ethereum, Solana, and XRP

Crypto Traders Bracing for Fed Announcement, Expecting Modest Price Moves

Crypto traders are preparing for potential price fluctuations ahead of the Federal Reserve’s policy announcement today, with Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP all showing signs of steady, moderate volatility.

Implied volatility readings from Volmex suggest that while some market movement is likely, it won’t be extreme. For Bitcoin, the one-day implied volatility stands at 49%, suggesting an expected 2.56% price change, equating to roughly $2,470 from its current price around $96,500.

Ethereum comes in with a slightly higher implied volatility of 66%, which translates to an anticipated 3.45% daily move. Solana shows an even greater potential for price swings at 4.3%, while XRP options data from Deribit point to an implied volatility of 77.98% for May 8, suggesting a 4.08% move.

The crypto sector’s 24/7 nature means volatility is calculated differently than traditional markets, dividing the annualized volatility by 365 days rather than 252.

While most analysts expect the Fed to maintain its current interest rates, all eyes will be on Chair Jerome Powell during his press conference at 18:30 UTC, where any shift in tone regarding future rate cuts or inflation could trigger significant market reactions.