Attention Cryptocurrency Investors: FED Decision Will Be Announced At That Time!

Cryptocurrency markets are experiencing tension ahead of the May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting, which will be announced tomorrow. Investors are wondering how high inflation is and how the Fed will respond. This situation causes many investors to sell their assets by reducing their risks.

Cryptocurrency markets await FED interest rate decision

Cryptocurrency markets are experiencing tension ahead of the May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting, which will be announced tomorrow. According to an update by hedge fund QCP, investors are selling their assets by reducing their risks. Markets are in risk-off mode: Investors are wondering how high inflation is and how the Fed will respond. Following a hot employment report, there is a strong possibility that interest rates will remain steady. The CME FedWatch Tool shows a 99.4% chance of interest rates remaining steady as of Monday.

However, QCP argues that this could be a decent opportunity to accumulate coins despite short-term setbacks. Long-term prospects remain optimistic. The recent launch of the ETH spot ETF and the ongoing verbal sparring between President Biden and former President Trump to win over crypto votes are seen as hopeful signs for the bull market.

When is the FOMC meeting?

This month’s FOMC meeting is particularly valuable as it will release the Dot Plot showing the number of rate cuts the Fed projects for the rest of 2024. While December projections predicted three interest rate cuts this year, Fed Chairman Jerome Powell reiterated that nothing was certain throughout the year. The FOMC will announce its next interest rate decision at around 21:00 / 22:00 today. Investors will closely follow how this decision will affect the markets and direct cryptocurrency prices. According to FOMC statements, the interest rate remained at 5.50 last month.

Following this month’s meeting, the FED meeting will take place on July 30-31, 2024. Subsequently, there will be meetings in September, November and December. Despite short-term fluctuations, long-term investors maintain their faith in the cryptocurrency market. Factors such as the launch of the ETH spot ETF and increased cryptocurrency adoption create the potential for significant price increases in the future. However, it is important for investors to be careful and consider their own risk tolerance. Cryptocurrency markets can be highly volatile and there is always a risk of losing your investments.