“Taper” and “volatility” seem to be the words of the month as Bitcoin gets further away from its $69,000 November all-time high. Along with the short-term bearish sentiment in the crypto market, BTC had a pullback on December 13th dripping below $48,000. Some people see more downsides and others rather bid for BTCUSD gains. Investors have derisked as all eyes are on and the current FOMC meeting and the Fed tapering of asset purchases, fearing Jerome Powell will be –too– hawkish. There are many speculations running around and some experts have suggested this Wednesday could turn into a “buy the rumors, sell the news” event, thus Bitcoin could see buyers cashing in. As NewsBTC has reported before, the central bank is expected to start reducing its net asset purchase month by month by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities. The scenario could get uglier for the traditional and crypto markets if the Fed decides on a faster taper, doubling the pace to $30 billion a month, raising interest rates earlier, meaning higher volatility. Related Reading | Surprise Bitcoin Selloff Causes Extreme Greed To Taper What Traders Are Saying About Bitcoin Analyst William Clemente claimed on Twitter that as the FOMC is “a known event”, then “anyone who is bearish BTC or wanted to risk-off lead up to FOMC has been and will have already done so...
