The Impact of the FOMC Meeting on the Crypto Market
The U.S. Federal Reserve’s monetary policy decisions during the Federal Open Market Committee (FOMC) meeting have a significant influence on crypto prices, particularly Bitcoin. The Fed’s preferred inflation metric, US PCE, has cooled to 2.9%, which is lower than market expectations. As a result, crypto prices are likely to experience upward momentum as the Fed maintains a dovish stance.
However, with the monthly close, the FOMC meeting, and earnings reports all happening this week, Bitcoin price momentum is expected to be range-bound. Currently trading at $43,304, BTC has seen a 3% increase ahead of the FOMC meeting and other economic events.
Markus Thielen, CEO of 10x Research, has recommended investors to buy Bitcoin above the $43,000 level. He predicts an upcoming BTC price rally as wave 5 begins and anticipates that BTC will reclaim the $50,000 level by the end of this quarter.
Hot Take: How Will the FOMC Meeting Affect Crypto Prices?
The outcome of the FOMC meeting and Jerome Powell’s speech on monetary policy and rate cut plans will have a direct impact on crypto prices. Traders will closely watch Powell’s cues for any indication of future interest rate changes. The Fed’s decision to keep rates steady or announce potential rate cuts can influence market sentiment and trigger price movements in the crypto market, especially for Bitcoin.
Given the Fed’s dovish approach and lower-than-expected inflation figures, there is a possibility of upside momentum in crypto prices following the FOMC meeting. However, other economic events and earnings reports may limit price movements in the short term. It will be crucial for traders and investors to closely monitor the developments and adapt their strategies accordingly.
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