#FOMCMeeting The most important day for the market this week: May 7 – FOMC Meeting
All attention is currently focused on the upcoming FOMC meeting scheduled for May 7. While investors hope for a rate cut, the current CME FedWatch data only shows a 2.7% probability of a 25bps rate cut.
This means that the Federal Reserve is likely to keep interest rates steady, or at least delay any easing of monetary policy. With inflation still persistent and a resilient labor market, the Fed seems unwilling to ease too soon.
Why is this important for crypto?
Because crypto, like stocks, thrives on liquidity. High interest rates mean that more capital will remain in safe assets like the USD and bonds. Low interest rates encourage risk-taking behavior, pushing capital into assets like BTC, ETH, and altcoins.
In summary:
• No cut = the market is likely to remain cautious.
• Unexpected cut = potential price explosion.
• Hawkish tone = potential volatility or short-term correction.
Key point: Be prepared. FOMC day is not just an ordinary Tuesday - it is a key factor that could shake both the traditional and crypto markets.
