#FOMCMeeting

📉📈 FOMC Meeting: How Does it Affect the Crypto Market?

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The **Federal Open Market Committee (FOMC)** meets periodically to decide U.S. monetary policy, including changes to **interest rates**, which have a direct impact on financial markets, including crypto.

### 🔍 **What to Expect from the Next FOMC Meeting?**

✅ **Possible Maintenance of Rates (4.25%-4.50%)**:

- Most economists anticipate that the Fed will keep rates unchanged due to inflation concerns and Trump’s tariffs.

- A neutral scenario could generate **moderate volatility** in Bitcoin and altcoins.

✅ **If There is a Rate Cut (Surprise)**:

- A cut could boost **market liquidity**, benefiting risk assets like Bitcoin and Ethereum.

- Historically, low rates have led to rallies in crypto (e.g., +375% in BTC from 2020-2022).

✅ **If There is a Rate Increase (Unlikely)**:

- A monetary tightening could put downward pressure on crypto prices, as happened in 2022.

### 📊 **Impact on Bitcoin and Altcoins**

▪ **Bitcoin**: Tends to react strongly to FOMC announcements, with average movements of **1.54%** on meeting days.

▪ **Altcoins**: More sensitive to changes in risk appetite; could fall if the Fed maintains high rates.

▪ **Stablecoins (USDT, USDC)**: Less affected, but a weaker dollar due to cuts could increase their use in trading.

### 💡 **Tips for Traders**

🔹 **Monitor Powell’s speech**: His tone (hawkish/dovish) may provide clues about future policies.

🔹 **Use Stop-Loss orders**: Post-FOMC volatility can liquidate leveraged positions.

🔹 **Long-term Opportunity**: If there is a cut, consider accumulating on technical dips.