BTC Experiences Local Volatility as FED Outlines Accommodative Policy for the Remainder of 2021

Fed Rates to Remain Unchanged Through 2021Bitcoin volatility is magnetic for traders who are able to capitalise off price swings in both directions. At the same time, bitcoin’s fundamental properties of absolute trust make it a desirable store of value. These properties are especially desirable in a time when faith in central bank policies wanes with each passing day.As the bitcoin market forms a consolidating or ranging structure, all eyes were on the US Fed FOMC meeting which just took place.In short, the Fed will maintain an accommodative stance of monetary policy for the year, while aiming to have rate two hikes fully priced in by 2023. However, this could change depending on the monthly data, as Powell noted during the question and answer period.Per Bloomberg data, the Fed released a so-called dot plot, outlining the US central bank path of interest rates. The Committee decided to keep the target range for the federal funds rate at 0 to 0.25%.During the press conference, Jerome Powell alluded to two things which grabbed my attention. Firstly, that the meeting was a “talking about talking about” meeting; and secondly, that the Fed “must be humble about our ability to understand the data.”In other words, Jerome Powell does not have a crystal ball despite the fact that global market participants treat his words as if he does.The case for bitcoin could not be stronger.Meanwhile, bitcoin seemingly reacted to the Fed meeting, exchanging hands within a 4% range as information dripped into the aether.This low time frame volatility was in line with expectations and will probably be locally contained within a larger ranging mid-term environment (until proven otherwise).All in all, the FED outlined an accommodative policy so any significant macro tremors are officially postponed, probably.Fortunately, last week bitcoin miners signalling positively for the Taproot upgrade…