Deniz 
As market players get ready for the possible beginning of a rate-cutting cycle by the U.S. Federal Reserve next month, expected is a decrease in the volatility of the Bitcoin price.
“In the lead-up to next week’s U.S. non-farm payroll report, we expect market volatility to continue its downtrend as the market positions itself for potential Fed rate cuts.” QCP Capital analysts stated.
Next week’s U.S. non-farm payrolls and Friday’s GDP figures are expected to give market participants more clarity on the probability and possible scope of a rate decrease at the next Federal Open Market Committee meeting on Sept. 18, claims QCP Capital.
Friday, September 6, will see the release of U.S. non-farm payroll data. The choices of the Federal Reserve on the direction of its interest rate can be influenced by this closely observed indicator. Early August’s previous non-farm payrolls showed an unexpected increase in the U.S. unemployment rate to 4.3% from 4.1%, which caused a global market sell-off due to worries about the Fed lagging in its rate-cutting initiatives.
Though they pointed out that it would probably have a lower impact on the bitcoin market, QCP Capital analysts also underlined the relevance of today’s forthcoming U.S. GDP data on bitcoin’s price performance, especially if it supports the general narrative of a slowing U.S. economy. Although the economy seems to be slowing down, it is yet unknown if a recession is about to strike.
For both bitcoin and ether, the experts noted investors in the derivatives market hedging for possible near-term negative swings. “Risk reversals until October are still skewed towards puts in both bitcoin and Ethereum, indicating that the market remains cautious about the underside,” they stated.
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