Federal Reserve Decision and Interest Rate Announcement Expected to Impact Cryptocurrency Market Sentiment

Crypto Market Awaits Fed Decision, Powell’s Statement; What to Expect

The crypto market is holding its breath as the Federal Reserve (Fed) prepares to announce its decision on interest rates today. The anticipation has led to mixed price action across the cryptocurrency space, with Bitcoin and Ethereum showing signs of resilience while many other assets traded lower.

As investors await the Fed’s decision and Chairman Jerome Powell’s subsequent statement, market sentiment is likely to be heavily influenced by the outcome. Any sign that the central bank will maintain a hawkish stance or continue to tighten monetary policy could lead to a more significant downturn in the crypto space.

In recent times, persistent inflationary pressures have led many analysts to predict slower rate cuts from the Fed. This would impact investor enthusiasm for riskier assets like cryptocurrencies, potentially leading to a decline in prices.

Meanwhile, Bitcoin recently surged to a new all-time high of $106,554 earlier today before retreating slightly to current levels around $103,926. The world’s largest cryptocurrency by market capitalization is now up 1.41% over the past day.

Ethereum also joined the party, rising 1.62% in the last 24 hours and trading at $3,951.

In contrast, most other cryptocurrencies are trading in the red zone. XRP, Shiba Inu, Toncoin, and BONK have lost between 2% and 4%, while SUI, BGB, Fantom, and RUNE gained between 4% and 15%.

The outcome of today’s Fed decision and Powell’s statement might set the tone for market activity in the days to come.

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Source: u.today