Eyes on Crypto Money Markets Are Turned To This Date! How Will the Critical Development Affect the Market?

The US Federal Reserve will announce its decision on interest rates on Wednesday, January 26, 2022, at 10 PM. Markets, especially crypto money investors, were locked in the statement from the Fed. So how is the Fed expected to decide on interest rates?

Financial markets have witnessed wild volatility in recent weeks. Market experts pointed to the Fed as the main reason for this move. As it is known, on January 6, the Fed published the minutes of the Federal Open Market Committee (FOMC) meeting held on December 14-15, 2021. The minutes showed that the rate hike could be earlier than the market expectation. We can say that the crypto market took the first blow here. Then, the developments that caused concern such as the escalation of Russia-Ukraine tensions and the SEC’s rejection of MicroStrategy’s Bitcoin accounting method accelerated the decline. As can be seen, although the Fed did not increase the interest rate, the expectation that the increase would take place in the near future caused the market to be shaken. In short, we can say that we witnessed a pricing regarding the hawkish attitude of the Fed in this process.

Right now, investors await the outcome of the Fed’s first policy meeting of the year this week. Investors are locked in by policymakers’ comments to gauge how quickly the central bank will raise interest rates this year and pull back on economic stimulus during the pandemic. The Fed will hold the meeting between January 25-26, 2022. Decisions regarding the meeting will be announced on January 26. Any statement from the Fed regarding interest rates could have immediate implications for both traditional and crypto markets.

So what outcome is expected from the meeting?

In general, the market expects the Fed to raise interest rates in March and beyond. If an interest rate hike comes from the Fed, the market will go down again. However, such a decision is not expected until March.

Popular analyst Michaël van de Poppe said: “Tomorrow’s FED FOMC meeting could mean we see a lot of volatility this week.” He warned investors.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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