- After finding temporary relief following last week’s drop, the crypto market is facing increased volatility while waiting for today’s news.
- The latest data shows that Bitcoin has been trading just below $26,000 for the past four days.
- Following the last three Federal Fund Rate and FOMC data releases, Bitcoin prices have experienced a decline in the following days.
Hours before the Fed’s interest rate announcement; the market remains calm and investors prepare for the interest decision.
Fed Statement Could Affect Prices
After finding temporary relief following last week’s drop, the crypto market is facing increased volatility while waiting for today’s news. The latest data shows that Bitcoin has been trading just below $26,000 for the past four days.
Due to Bitcoin’s dominance reaching approximately 49%, the altcoin market may show more downward trends in the coming days and weeks. Additionally, investors are shifting their capital from low market value altcoins to Bitcoin and stablecoins to protect their investments.
Following the last three Federal Fund Rate and FOMC data releases, Bitcoin prices have experienced a decline in the following days. The Federal Reserve has begun to reduce its exposure to risky assets, such as Bitcoin, by raising interest rates to combat inflation.
Therefore, today’s FOMC statement and the Fed’s interest rate announcement will play a key role in shaping Bitcoin’s price movement in the coming days. The Fed’s interest rate announcement will take place at 9 pm Turkish time.
Will the Fed Keep Interest Rates Steady?
With the debt ceiling, which was recently raised to its upper limit and is currently around $31.4 trillion, the Fed Commission is under less pressure. This increases the likelihood of a pause in today’s announcement. As a result, if the Fed chooses to stop interest rate hikes, the stock market may react positively.
Gennadiy Goldberg, the head of US interest rate strategy at TD Securities, said:
“Given the fact that policymakers are data-dependent, the Fed will struggle to look hawkish credibly if it pauses on Wednesday.”
