According to CoinDesk, the Federal Reserve's Federal Open Market Committee (FOMC) is expected to maintain its benchmark fed funds rate at 5.25%-5.50% at the end of its two-day policy meeting on Wednesday. Both traditional and crypto market traders will be closely watching the rate decision's accompanying policy statement and Fed Chair Jerome Powell's post-meeting press conference for indications about the future direction of monetary policy. In recent weeks, Fed speakers have hinted that the central bank may raise interest rates one more time before concluding the historic rate hike cycle that began in March 2022 with a fed funds rate of 0% and currently stands at 5.25%-5.50%.
However, recent fluctuations in financial markets, some weakening economic indicators, and increased geopolitical tensions could provide the Fed with an opportunity to reconsider further rate hikes. Bitcoin's strong October breakout from the $27,000 area has been stuck in the $34,000-$35,000 range for the past week, possibly waiting for new momentum. While a dovish signal from the Fed could push Bitcoin out of this range, few expect it to happen. Matthew Ryan, head of market strategy at Ebury, told CNBC, 'We still see another U.S. rate increase as unlikely in the current cycle. As a compromise, we think that the Fed will stress that rate cuts are not on the cards anytime soon, with easing to begin no sooner than the second half of 2024.'
