FED, announcing its interest rate decision tonight, will lead to what kind of movement in Bitcoin and cryptocurrencies?
The US Federal Reserve (FED) will announce its interest rate decision today at 21.00 (GMT+3). It is expected that there will be movement in the cryptocurrency market at the moment when this data is announced.
Initially, it was expected that the FED would cut interest rates globally for the month of March. Then, with the slowing decline in inflation, the US gave signals that it would not cut interest rates for a while. Following the inflation published in February, the expectations for interest rate cuts for March suddenly decreased from 45% to 1%.
It is almost certain that FED will not make any changes in interest rates, but in the event of a change, the traditional and cryptocurrency markets could be deeply affected. It is also expected that FED will not cut interest rates even in May.
What happened to Bitcoin?
FED, which announced the previous interest decision on January 31, chose to keep it stable. Although this decision of the FED did not have a great impact on the markets, there was a slight decline in Bitcoin.
The price of Bitcoin had dropped from $43,350 to $41,900 on January 31, then it had started to rise sharply. Bitcoin, which continued to rise almost without stopping, had reached $73,500.
Now, it is estimated that the interest rate expectations are already priced in. After the announcement that FED will keep it stable, it is predicted that a direction will be determined in Bitcoin based on the move of the dollar.
According to CoinGecko data, Bitcoin is trading at $63,289 at the time of writing.
