cryptocurrency and financial markets are focused on the FOMC meeting to be held in the USA. Data reveals that there were sales in crypto assets, especially Bitcoin, Etehreum, Solana, XRP and Cardano, before the meeting where the interest rate decision will be announced.
The Eyes of the Cryptocurrency Market are on the FOMC Meeting
As we reported as Koinfinans.com, the FOMC meeting will take place late in the evening today. At the meeting, the interest rate decision, which will also show the US Federal Reserve’s initial stance for 2024, will be announced. This being the case, many speculations continue to circulate in the market. Bitcoin The price is trying to maintain the level of $ 43,000 in the shadow of these speculations.
Market sentiment is tense as the CME FedWatch Tool shows there is a 97.9% chance the Federal Reserve will maintain its current interest rate. However, the main focus will be on Fed Chairman Jerome Powell’s speech as investors look for clues about future monetary policy.
Although inflation in the US has shown signs of cooling for a while, it is still above the Fed’s 2% target rate. However, the dovish attitude from the FED may support a positive outlook in financial markets, especially the cryptocurrency market.
Notably, the Federal Reserve had kept the interest rate steady at 5.25%-5.5% for three consecutive meetings in December 2023. Now, the market expects three interest rate cuts of 75-100 basis points in 2024.
According to BlackRock analysts, it is highly likely that interest rate cuts will start in June. Morgan Stanley analysts emphasize that the Fed continues to act cautiously and points out that it is taking things slowly.
While the global crypto market value decreased by 2.44% compared to yesterday to $1.63 trillion, the transaction volume in the last 24 hours increased by 10.75% to $59.84 billion. Notably, the fear and greed index in the crypto market was at 57, indicating neutral sentiment in the segment amid FOMC speculation.