Two important events this week that will likely lead to increased market volatility

Bloomberg believes that after the announcement of the Federal Reserve’s latest interest rate decision and the release of US inflation data for November, we are likely to see increased volatility in financial markets.

On Basis As the financial markets try to predict the economic situation in 2024, some traders expect these events to increase the volatility in the markets, Bloomberg reports. According to one of these reports, one of the criteria for measuring market expectations of volatility has reached its highest level since March.

The US central bank is currently expected to hold interest rates steady after a record hike since March 2022 (March 1400). Retail investors are starting to react. According to Bloomberg, the entry of $6.8 billion of capital into the US stock market last week, the largest figure in the past nine months, has caused the reaction of retail investors.

according to Report Forbes, markets expect inflation to ease in November as energy prices fall. Of course, part of the market also believes that the Fed will likely cut interest rates by next spring. According to current reports from the Cleveland Federal Reserve, the point-to-point inflation rate in the United States for November is expected to be 3%.

Bitcoin volatility returns again

Bitcoin price volatility has also increased compared to its lowest level in August due to the increase in the recent upward trend of the digital currency market. According to data from D Block, although Bitcoin’s volatility has not returned to its annual high seen in late March, its annual volatility has increased by 7% over the past 30 days.

It should be noted that not all digital currency companies active on Wall Street have performed well during the recent market uptrend. For example, Coinbase stock has underperformed Bitcoin over the past week, even though its value is rising overall.