- During the FOMC meeting held on Tuesday, the US Federal Reserve announced for the third consecutive time that it has decided not to change interest rates.
- The expectation of most officials is to have three interest rate cuts in 2024 to align inflation with the 2% target.
- Poppe shared his views on the FOMC, stating that it ended with a dovish stance and is likely a signal for future interest rate cuts.
The FOMC meeting and the statements made on Tuesday renewed positive sentiments in the Bitcoin market: Here are the details!
How Will the Fed Policy Be in 2024?
During the FOMC meeting held on Tuesday, the US Federal Reserve announced for the third consecutive time that it has decided not to change interest rates. This led to a 4.5% increase in the price of Bitcoin (BTC), and it is currently trading around $42,700. The altcoin market also joined in on this celebration.
Despite some selling pressures earlier this week in the altcoin market, it continues its rally despite positive Fed comments. Ethereum (ETH) price is trading at $2,250, up by 3.75%, while others like Solana (SOL), Avalanche (AVAX), and Cardano (ADA) have recorded higher price rallies.
In the latest Federal Open Market Committee (FOMC) announcement, the Federal Reserve decided to maintain the current interest rates. The unexpected rapid decline in inflation throughout the year prompted officials to review their projections.
The expectation of most officials is to have three interest rate cuts in 2024 to align inflation with the 2% target. Federal Reserve Governor Christopher Waller suggested the theoretical possibility of starting interest rate cuts based on positive inflation performance.
However, these three interest rate cuts are fewer than what many analysts on Wall Street had envisioned. The limited number of expected interest rate cuts in 2024 indicates officials believe it is necessary to maintain high borrowing rates throughout much of next year to continue restraining spending and inflation.
Santa Claus Rally or Bottom Buying Market?
Most analysts believe that the crypto market will continue towards Christmas and into the new year of 2024. Crypto analyst Michael van de Poppe shared his views on the Federal Open Market Committee (FOMC), stating that it ended with a dovish stance and is likely a signal for future interest rate cuts.
Van de Poppe drew attention to the risk-averse tendency for Bitcoin before the FOMC event and then noted an improvement, expressing optimism for a continued upward trend. In this current pre-spot ETF stage, Van de Poppe set a target for Bitcoin in the range of $47,000 to $50,000.
In the current market stage, considering bottom buying for altcoins and Bitcoin is advisable. The market has significantly lost value, and Ethereum has the potential to gain momentum in the coming months, he added.
