Bitcoin Goes Slack as US Strike on Venezuela Sparks Turmoil Ahead of Fed Meeting

Geopolitical Context - Geopolitical tensions are escalating in Venezuela, particularly due to U.S. military actions against vessels linked to drug trafficking [1][2] - The U.S. has conducted two strikes on Venezuelan boats, resulting in casualties, with the latest strike killing three individuals [1][2] Bitcoin Market Reaction - Bitcoin's price has shown minimal reaction to the geopolitical news, currently trading at $115,018, reflecting a 0.2% increase over the past day but a 2.7% decrease compared to the previous month [2] - Analysts from Bitunix have advised traders to monitor the situation in Venezuela closely, as further escalation could impact Bitcoin's performance [3] Federal Reserve Interest Rate Decision - There is anticipation surrounding the Federal Open Markets Committee (FOMC) interest rate decision, with a majority of market participants expecting a 25-basis point cut [5] - The sentiment for a larger 50-basis point cut has significantly decreased, dropping from 30% to 7.4% among market participants [5] Market Volatility Indicators - The Chicago Board Options Exchange's CBOE Volatility Index (VIX) has been rising, indicating increased market uncertainty, with a 1.69% increase over the past five days [6] - The Merrill Lynch Option Volatility Estimate (MOVE Index) has also risen by 4.79% since the previous day's close, reflecting heightened volatility in response to geopolitical events [7]