The Weekโs Financial Events
Thisย comingย week, there are plentyย of key financial events that may impact the cryptocurrency market. On September 19, data will be released for housing starts and building permits in the Unitedย States. These indicators provide insight into theย present state of the housing market, although they doย not directly affect cryptocurrency markets.
The most wholeย lotย of event to watch out for is the Federal Reserve meeting on Wednesday, September 20. Althoughย while it is not expected that the monetaryย authority will change its stance on interest rate policy or provide a definitive near-term outlook, the focus will be on the Fedโs economic forecast, known as the Summary of Economic Projections (SEP).
โFed guidance on Wednesday sets the tone for the next few meetings. Expect to see numerous volatility this week.โ
According to reports, the Fed may lower its core inflation forecast and increase its estimate for the longer-term neutral rate. The central bankโs intention to keep interest rates high to combat inflation may have negative implications for households with increasing levels of debt and growing personal interest payments.
On September 21, data for jobless states and existing home sales will be released, but these are not expected to have a wholeย lotย of impact on markets.
Cryptocurrency Market Outlook
Currently, cryptocurrency markets have remained relatively stable with total capitalization at $1.1 trillion. Bitcoinย (BTC) briefly reached $26,700 but quickly retreated to around $26,668. Ethereumย (ETH) has shown minimal activity over the weekend and is hovering around $1,630.
With a low probability of a Fed rate change thisย comingย week, it is likely that cryptocurrency markets will continue their consolidation phase and remain relatively stagnant.
Hot Take: Cryptocurrency Markets Brace for Volatility Amidst Federal Reserve Meeting
The upcoming Federal Reserve meeting is expected to set the tone for the rest of the year and could bring wholeย lotย of volatility to the cryptocurrency market. Althoughย while the monetaryย authority is unlikely to change its interest rate policy, its economic forecast and probable adjustments to core inflation and neutral rate estimates will be closely watched. The Fedโs commitment to keeping interest rates high may negatively impact households with increasing debt and growing personal interest payments. As a result, cryptocurrency markets are anticipated toย sustain their current consolidation phase as investors await further guidance from the Federal Reserve.
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