- Leading cryptocurrencies anticipate rate hike, potentially increasing BTC and ETH value.
- FOMC meeting holds importance for traditional finance and influences crypto market.
- Analysts predict 65% chance of rate hike, 34% chance of future increases.
Leading cryptocurrencies such as Bitcoin and Ether are in a consolidation phase in anticipation of today’s FOMC meeting, which is widely anticipated to result in a 25 basis point rate hike. Experts in the crypto industry have forecasted that a rate hike followed by a pause would likely lead to an increase in the value of BTC and ETH. However, most traders in the market are more inclined towards a pause in interest rate hikes rather than another increase.
The upcoming Federal Open Market Committee (FOMC) meeting, slated for today, holds significant importance for the traditional finance sector and is eagerly awaited. However, it is worth noting that this event has also influenced the crypto market in the past, as the stance of the U.S. Federal Reserve on interest rates often triggers reactions in mainstream cryptocurrencies.
As per a Bloomberg report, analysts at JPMorgan Chase & Co.’s trading desk have assessed a 65% likelihood of the Federal Reserve implementing an interest rate hike and subsequent pause. Additionally, they have indicated a 34% probability of an interest rate hike, accompanied by subsequent increases in the future. Furthermore, the analysts have outlined a scenario where the interest rate remains unchanged, albeit with a minimal probability ranging from 1% to 2%.
Currently, Bitcoin (BTC) is being traded at $29,194, exhibiting a minimal 0.14% fluctuation within the last 24 hours. In the days preceding today’s Federal Open Market Committee (FOMC) meeting, BTC maintained a consistent trading range between $29,000 and $31,300. Simultaneously, Ethereum (ETH) is traded at $1,852, with a marginal 0.06% change observed over the past 24 hours.
According to data provided by Coinglass, a leading on-chain analytics platform, the sentiment among crypto traders regarding the price movement of Bitcoin before the Federal Open Market Committee (FOMC) meeting was evenly divided. The ratio between long and short positions on major cryptocurrency exchanges was approximately 1:1. Esteemed technical analyst Jim Wyckoff observed that the futures prices of Bitcoin for August were slightly higher during the early trading hours in the United States.
