In a world where economic indicators constantly sway investor confidence, the Federal Open Market Committee (FOMC) is poised for its upcoming deliberation. However, amidst the broader market turmoil, a sector seems to be persistently unwavering – the cryptocurrency market. The million-dollar question remains: will crypto prices continue to remain unaffected?
Fed Rate Hike: The Ever-Approaching Reality
The FOMC meeting, scheduled for later today, may likely continue its trend towards tighter monetary policy, signifying an uptick in the federal funds rate. The CME Rate Watch tool signals a staggering 98% probability of this quarter-point increment, elevating the rate to a staggering 525-550 basis points. This shift would denote the highest point in nearly 17 years.
Following a brief intermission last month in the ongoing monetary tightening, the central bank’s recent assertion of potential further rate increases has roused investor concerns. Inflation remains a looming threat, and the Committee has expressed its readiness to adjust its policy stance if impending risks jeopardize its objectives.
An Unruffled Crypto Market Amidst Economic Uncertainty
Interestingly, the cryptocurrency market has showcased unwavering resilience against these macroeconomic fluctuations. Bitcoin, the crypto giant, oscillated between $29,000 and $31,500 over the past couple of months, despite macroeconomic fluctuations. The need for a new catalyst to energize Bitcoin traders is echoed by market analyst Edward Moya.
The overall crypto market, presently in a subtle bearish phase, experienced a minor slump of 1.77% over the past 24 hours. The top 20 cryptocurrencies are currently all in the red on their daily charts. The market is still teetering on the brink of a bull run.
On the economic front, the Conference Board will unveil its latest Consumer Confidence Index (CCI) on Tuesday, providing insights into public sentiment towards the economy. Moreover, the jobless claims data set for release on Thursday and the Personal Consumption Expenditures (PCE) report on Friday will offer further perspectives on economic growth and inflation.
So, while the financial world nervously anticipates the report’s potential impact on the Fed rate decision, only time can properly answer the million-dollar question – Will crypto markets remain unaffected?.
