#FOMCMeeting The most important date 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, current CME FedWatch data shows only a 2.7% probability of a 25bps rate reduction.
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 reluctant to ease too early.
Why is this important for crypto?
Because crypto, like stocks, thrives on liquidity. High interest rates mean that more capital will stay in safe assets like 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.
• Surprise cut = potential for a price explosion.
• Hawkish tone = potential for 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.
This is not financial advice. Please do your own research and manage risks appropriately.
