What to Expect from the US Federal Reserve’s Announcement
The US Federal Reserve is set to make a highly anticipated announcement on March 20, which will have significant implications for the country’s economic outlook. Here’s what you need to know:
- The Fed Interest Rate Decision will be announced on Wednesday.
- The probability of the Fed keeping interest rates unchanged is as high as 99%, according to data from the Chicago Mercantile Exchange.
- Markets now only see three interest rate cuts in 2024, compared to the previous expectation of seven rate cuts.
- The odds of a rate cut this week are less than 2%, and the odds of a rate cut in May are around 7%.
- Interest rates in the US are currently at 5.5% and have remained unchanged since July 2023.
Global Impact
It’s not just the US that will be making interest rate decisions this week. Australia, the United Kingdom, Japan, and other nations will also announce their decisions, leading to increased market volatility.
Potential Danger for Bitcoin
Bitcoin and crypto markets have been experiencing increased institutional interest due to spot ETF launches in the US. However, as daily ETF inflows begin to decline, there are concerns that this enthusiasm may wane as the halving approaches.
- Crypto trader and analyst ‘Rekt Capital’ predicts that Bitcoin will enter the “Danger Zone” this week.
- Historically, BTC has experienced retraces of 20% to 40% in the weeks leading up to the halving.
BTC has already fallen by 7.7% from its all-time high of $73,738 on March 14 and is currently trading at $68,600.
Hot Take: What Does This Mean for You?
The upcoming announcement by the US Federal Reserve is highly anticipated and will shape the economic outlook of the country. Here’s what you need to keep in mind:
- The Fed is expected to keep interest rates unchanged, with a 99% probability according to market data.
- The previous expectation of seven rate cuts in 2024 has been revised down to three.
- Bitcoin may be entering a volatile period as it approaches the halving, with historical retraces of up to 40%.
Stay informed about the latest developments and monitor market trends closely. It’s essential to make informed decisions based on current information and market conditions.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.