The Federal Open Market Committee (FOMC) is scheduled to announce interest rate decision on 19th March, 2025
There are three possible scenarios that can impact Overall Crypto market.
1) Rate increase
If Fed increases rate that will mean inflation is still a concern and which could Strengthen US dollar, increase borrowing cost which reduces liquidity in market and prioritizing safe investments like bonds, saving accounts and treasuries. Hence putting pressure on risky assets like cryptocurrency.
2) Rate Hold
If rates are unchanged then that means Fed are monitoring economic conditions and crypto may see short term volatility but no major trend shifts.
3) Rate Cut
If Fed cut rates that means Weaken US dollar, making alternative assets more attractive and Lower borrowing cost leading to more businesses and people borrowing loans cheaper and investing in risky assets like crypto and stocks. This could rally Stock and crypto market.
In Conclusion:
Interest rate decision is very important as rate hike or increase can push prices down and rate cut may push crypto prices up. It is important to watch out for 19 March, 2025 and mange your trades accordingly.
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