As a seasoned crypto investor with a keen interest in the market dynamics, I closely follow the US Fed meetings and their potential impact on the crypto assets. This week’s meeting is particularly intriguing as analysts predict varying outcomes regarding interest rates. While some anticipate no change, others expect rate cuts later this year.
The ongoing US Federal Reserve Meeting has left investors in a state of anticipation regarding the impending monetary policy changes in the country. Happening since April 30, this two-day event is keeping market analysts engaged as they ponder over potential future directions and their repercussions on stocks and cryptocurrencies.
As a crypto investor, I’m keeping a close eye on the upcoming monetary policy decision. Based on the current market sentiment, it seems unlikely that interest rates will change this week. If rates do stay put, we’ll have experienced six consecutive meetings with no adjustments. The rationale behind this decision appears to be monitoring ongoing inflation trends carefully.
The US Federal Reserve has kept interest rates unchanged, in line with its earlier indication that reducing rates before seeing a decrease in inflation is not yet advisable.
JP Morgan Expects Rate Cuts in July
Market players anticipate rate reductions as a means of increasing investment in specific assets. Some analysts predict that the initial rate reduction declaration will occur in the third quarter, contingent upon current economic conditions in the U.S.
According to JP Morgan and Goldman Sachs, two major players in investment banking, the Federal Reserve of the United States is expected to make interest rate reductions in July 2024, given their current hawkish stance. This forecast arises as inflation persists above the 2% threshold.
According to Wells Fargo’s prediction, the US Federal Reserve is expected to make the first interest rate reduction in September. In contrast, Bank of America anticipates that the rate cut will occur in December. Ruslan Lienkha, the Chief Market Officer at YouHodler, believes that the Fed will keep rates unchanged during this week’s meeting as they continue to assess inflation indicators.
Crypto Assets Reaction to US Feds Meeting
At Federal Reserve meetings, the crypto market often follows the same trend as the stock market. If the Federal Reserve decides to reduce interest rates, this is likely to give the crypto market a significant boost. Conversely, if interest rates are increased, investors may pull their funds from riskier assets like cryptocurrencies, negatively affecting the market.
Currently, crypto prices are influenced by pessimistic outlooks caused by broader economic and sector-specific developments. Bitcoin is priced at $56,966, representing a 6% decrease in value over the past day. The market downturn affects not only Bitcoin but also altcoins and memecoins.
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2024-05-01 20:08