U.Today – Cryptocurrency markets are buzzing with anticipation ahead of the Federal Reserve's decision and Chairman Jerome Powell's comments later this week.
The last meeting of the US Federal Reserve of the year is scheduled for this week. Tuesday and Wednesday's Federal Open Market Committee will be of particular interest to investors who are eagerly anticipating this year's final interest rate decision.
Other economic data will be released throughout the week, including November retail sales and weekly new jobless claims on Tuesday, and third-quarter gross domestic product growth on Thursday.
As of Monday, the market had priced in a 97% probability of a 25 basis point rate cut. Markets will be watching the Fed's latest policy statement and Fed Chairman Jerome Powell's press conference on Wednesday for clues about future interest rate decisions.
The Fed is currently in a blackout period, which prevents committee members from making public comments before the FOMC meeting.
What do you expect?
If the Fed announces a rate cut and Chairman Powell's comments are received positively, the crypto market may also react positively. As investors seek higher returns, lower interest rates generally lead to an increase in risky assets, including cryptocurrencies.
On the other hand, markets could react unfavorably if Powell's statements signal a slower approach, or if the rate cuts are smaller than expected. Concerns about persistent inflation and a slowing pace of rate cuts could dampen investor enthusiasm.
In Monday's trading session, the cryptocurrency market is currently showing mixed price trends. It recently hit an all-time high.
Bitcoin price recently rose 1.41% on a daily basis to $103,926, after reaching an all-time high of $106,554 in early Monday trading, according to CoinMarketCap. It rose 1.62% in the past 24 hours to $3,951. The majority of cryptocurrency assets traded in the red. In the past 24 hours, Toncoin and BONK have fallen 2%-4%, while SUI, BGB, Fantom, and RUNE have risen 4%-15%.
The outcome of the Fed's decision and Powell's insights could set the tone for markets in the coming days.
This article was originally published on U.Today
