Bitcoin
Analyzing the impact of the latest FOMC meeting on the Bitcoin and cryptocurrency markets
The Federal Reserve’s long-awaited decision on May interest rates has now been released. Nowadays Federal Open Market Committee (FOMC) At the meeting, they decided to keep interest rates the same, sparking optimism in the cryptocurrency community.
What impact should you expect? Read!
Interest rate Hold tight
Chairman Jerome Powell, at today’s FOMC meeting, announced that interest rates will remain unchanged, oscillating between 5.25% and 5.5%. Despite expectations of rate cuts to boost economic growth, the Fed is holding firm. Powell stresses the need to stabilize inflation rates closer to the 2% target, currently at the undesirable 3%.
Today’s FOMC meeting focused primarily on inflation concerns, despite recent signs of improvement. The decision to keep rates stable reflects the Fed’s cautious approach to economic uncertainty.
The cryptocurrency market reacts
Following the FOMC announcement, the cryptocurrency market saw a flurry of activity. Santiment, a leading financial analysis firm, highlighted the community’s hopes that the rate cuts will raise the caps of both the stock market and cryptocurrencies.
“Many in the crypto industry expected this May 1 decision from the US #Fed to result in interest rate cuts, which in turn would reinforce the limits of the stock market and cryptocurrencies by association.”
Sanction
Although rates remained unchanged, there was a notable jump in cryptocurrency prices, with altcoins experiencing breakout times.
“Many altcoins saw some breakouts immediately following the news as traders began to feel more comfortable making speculative #buys again now that this month’s decision is behind them.”
Sanction
Bitcoin Price Rollercoaster Ride
Bitcoin faced a significant drop ahead of the FOMC meeting, falling to lows of $56,600. However, it managed a modest recovery to $57,708 following the announcement.
Bitcoin’s volatility has been influenced by several market events, including ETF launches in Hong Kong and the recent Bitcoin halving event. Despite short-term fluctuations, Standard Chartered predicts an increase to $150,000 by the end of the year.
While short-term volatility persists in the cryptocurrency world, there is consensus on long-term growth. The Fed’s decision to hold rates indirectly supports market stability by providing investors with a sense of continuity and preventing panic-induced reactions to potential rate hikes.
Also check out: Crypto Market Turns Bearish When “Sell in May and Go, It Gets Real”, Bitcoin Will Drop Close to $47K