#FOMCMeeting The Fed Puts on Pause: No Rate Cut in May and Its Impact on Crypto

Summary:

The Federal Reserve of the United States (Fed) will meet on May 7, and according to the market (with a probability of more than 96%), it will keep interest rates unchanged. The expectation of a rate cut in May is virtually nonexistent.

Why will there be no cut? The main reason is that inflation in the United States remains high, which prevents the Fed from feeling comfortable relaxing its monetary policy. Global economic uncertainty and trade tariffs also influence the Fed's caution. The market's message is clear: "high rates for longer."

How does this affect cryptocurrencies? Generally, a scenario of high interest rates does not favor risk assets like cryptocurrencies. This is because:

* "Safe" money becomes more attractive.

* General appetite for risk decreases.

* It can curb price increases or even exert downward pressure.

Suggested strategies (not financial advice):

* Greater caution: Be more selective with cryptocurrencies, especially those with lower market capitalization.

* Focus on quality: Prioritize projects with solid fundamentals and clear use cases.

* Less leverage: Be conservative when trading on margin.

* Diversification: Do not concentrate investment in a single type of asset.

* Patience and liquidity: Wait with available capital (cash or stablecoins) for better opportunities.

In conclusion: The market assumes that there will be no rate cut in May by the Fed. This creates a less favorable environment for rapid and strong growth in the crypto market in the short term. It is recommended to be selective, patient, and manage risk carefully.

The publication also invites the community to share their opinions and strategies in light of this outlook.