U.Today – The cryptocurrency market is abuzz with anticipation ahead of the Federal Reserve decision and comments from Fed Chair Jerome Powell later this week.
The U.S. Federal Reserve’s final meeting of the year is slated for this week; the Federal Open Market Committee’s meeting on Tuesday and Wednesday is of particular interest to investors eagerly expecting this year’s final interest rate decision.
Other economic statistics will be released throughout the week, including retail sales for November on Tuesday, weekly initial jobless claims and the GDP growth rate for the third quarter on Thursday.
As of Monday, markets had priced in a 97% chance of a 25-basis-point interest rate decrease. Markets will look to the Fed’s updated policy statement and Fed Chair Jerome Powell’s press conference on Wednesday for clues about future interest rate decisions.
The Fed is now undergoing a blackout period, which means committee members are unable to make public comments prior to the FOMC meeting.
What to expect?
If the Fed announces a rate cut and Powell’s comments are regarded positively, the cryptocurrency market may respond positively. Lower interest rates generally boost risk assets, including cryptocurrencies, as investors seek higher returns.
On the other hand, if Powell’s statement suggests a slowing approach or if the rate cut is smaller than expected, the market may react unfavorably. Concerns about persistent inflation and a slower pace of rate cuts might dampen investor enthusiasm.
In Monday’s trading session, the crypto market is currently posting mixed price action. recently surged to a new all-time high.
According to CoinMarketCap, Bitcoin’s price was recently up 1.41% daily at $103,926, after reaching a new record high of $106,554 in early Monday trading. rose 1.62% in the last 24 hours to $3,951. The majority of cryptocurrency assets traded in the red; , , Toncoin and BONK lost between 2% and 4%, while SUI, BGB, Fantom and RUNE gained between 4% and 15% in the last 24 hours.
The outcomes of the Fed’s decisions and Powell’s insights might set the tone for the market in the coming days.
