The impact of the Federal Open Market Committee on Bitcoin? Cryptocurrency markets are watching Donald Trump and Jerome Powell. Will Bitcoin rally after pivotal FOMC meeting on January 29?
In November last year, Donald Trump said his administration would look into the matter Lower interest rates even furtherAnd reduce the burden on consumers.
Since then, the Fed has not only slowed its interest rate cuts, but has also hinted that in 2025, they will not be eased as quickly as expected.
this It was bearish for the cryptocurrency and stock markets. Although prices fell due to these comments, the bulls quickly accumulated more coins, taking advantage of the discounts available at the time.
now, On January 29, all eyes will be on the central bank and the Federal Open Market Committee. As usual, The risks couldn’t be higher, and the Fed is expected to surprise markets.
With Trump in office, the Trump czars favor low interest rates to stimulate economic growth. However, whether the Fed will be hawkish (tighter) or dovish (less) depends on economic Data and its performance. It is important to take into account inflation, GDP growth, and labor market factors.
Eyes on the Fed: Will it raise or lower interest rates?
Given Trump’s ambitions in the next four years, the world is watching the Fed closely. The president wants to reinstate tariffs, cut taxes on businesses, and Basically Create an enabling environment for American businesses to thrive.
These expectations led to an increase in bond yields, where they reached… Above 4.50% earlier this month. Economists expect domestic productivity to grow, pushing inflation to higher levels.
It is said that Morgan Stanley He predicts The central bank will keep interest rates steady at the next meeting. The World Bank also expects the central bank to change its stance on labor markets from “cooling” to “stable.”
Over the past six months, the economy has created more jobs and looks healthier than it did previously.
Later, President Jerome Powell may as well Choose to They stressed that the central bank will rely on data, tracking labor markets and inflation. He could even signal openness to lower interest rates by March 2024.
Overall, the Fed will be cautious in its messaging, maintaining a cautious yet optimistic tone, taking into account all the uncertainties surrounding the economy. However, their primary goal will be to keep inflation low towards the benchmark rate of 2%.
Will Bitcoin prices rise after the FOMC?
How the cryptocurrency market reacts will depend on whether the Federal Reserve holds or lowers interest rates on January 29.
If the central bank unexpectedly cuts interest rates, Bitcoin .cwp-coin-chart svg path { Stroke-width: 0.65 !important; }
price
Volume in 24 hours
The price is 7 D
You will be pumped more aggressively with capital flows into speculative assets and stocks. In this case, it would be easy for Bitcoin to break $110,000 and then $120,000 later.
(Bitcoin/Dollar)
On the contraryIf the bank holds interest rates and becomes hawkish, lowering interest rate expectations, Bitcoin could fall below $100,000, and even fall below $90,000.
In this case, capital will easily flow into Treasury bonds whose yields have fallen rose In recent weeks.
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