Crypto markets may soon see volatility as a possibility.
activity in the options markets foreshadowed moves in crypto this week, according to a report from crypto exchange Bitfinex.
The report notes that option implied volatility is currently 36.4%, while historical volatility is 27.1%.
Bitcoin has increased 3.5% to $28,000 in the past 24 hours, and has increased by 6.4% in the past seven days.
The Fed paused interest rate hikes last month, leaving them at a target range of 5.25% and 5.50%.
The Fed also made a'significant and unusually large' shift in its interest rate outlook, Mr. El-Erian, a head of PIMCO's parent company Allianz, said in a statement.
The policymaker's projected interest rate levels rose to 5.1% in September from 4.6% in June - suggesting the possibility of two ratecuts next year is off the table.
Cryptobase research predicted volatility in Bitcoin and equities would likely increase because of higher-than-expected inflation data.
The possibility of higher volatility has been evident in the stock market's performance lately. The VIX, a measure of the investor sentiment and expected volatility, moved higher on Monday, up above 18 from below 16 on Friday.
DL News' London-based Markets Correspondent, Adam Morgan McCarthy, is in the newsroom. Thomas Carreras is a market trader at DL News.