Impact of FOMC Bitcoin? The crypto market is paying attention to Donald Trump and Jerome Powell. Will BTC soar after the important FOMC meeting on January 29th?
Last November, Donald Trump said his administration would consider it. lower interest rates furtherreducing the burden on consumers.
Since then, the Fed has not only slowed its pace of rate cuts, but also signaled that they won't cut rates as fast as expected in 2025.
this I was bearish on the cryptocurrency market and the stock market. Despite the price dropping following these comments, bulls quickly amassed more coins by taking advantage of the discounts available at the time.
now, All eyes will be on central banks and the FOMC on January 29th. As always, The stakes couldn't be higher, and the Fed is expected to surprise the market.
With President Trump in office, the emperors will likely favor lowering interest rates to stimulate economic growth. However, whether the Fed will be hawkish (tightening) or dovish (lowering) is economical Data and its performance. The key is to consider factors such as inflation, GDP growth, and the labor market.
Focus on the Fed: Will it raise or lower rates?
Given President Trump's ambitions over the next four years, the world is watching the Fed. The president reintroduced tariffs, lowered corporate taxes, fundamentally Create a favorable environment for American companies to grow.
These expectations cause bond yields to rise, It was above 4.50% earlier this month. Economists expect domestic productivity to rise and inflation to rise further.
According to a report from Morgan Stanley, predict The central bank is likely to leave interest rates unchanged at its next meeting. The World Bank also expects central banks to shift their position on the labor market from “cooling” to “stable.”
Over the past six months, the economy has created more jobs and looks healthier than ever before..
Then Chairman Jerome Powell select The central bank claims to rely on data and track labor markets and inflation. He may even signal a willingness to cut interest rates in March 2024.
Overall, the Fed will maintain an optimistic but cautious tone and send its message carefully given all the uncertainty surrounding the economy. Even so, their main goal will be to keep inflation down toward the 2% benchmark rate.
Will Bitcoin price rise after FOMC?
How the crypto market reacts will depend on whether the Fed leaves interest rates unchanged or lowers on January 29th.
If the central bank unexpectedly lowers interest rates, Bitcoin .cwp-coin-chart svg path { stroke width: 0.65 !important; }
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The flow of capital into speculative assets and stocks will become even more intense. In this event, it would be easy for Bitcoin to break above $110,000 and then $120,000.
(BTCUSDT)
vice versaif banks maintain interest rates and become hawkish and lower their interest rate forecasts, BTC could fall below $100,000 and even below $90,000.
In that case, capital would easily flow back into high-yield government bonds. woke up In the last few weeks.
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