#FOMCMeeting

The Fed prepares to move the financial board: crypto investors on alert

This Wednesday, the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve will make a crucial decision on interest rates, and although the world of cryptocurrencies operates in a decentralized manner, each statement from Chairman Jerome Powell tends to generate strong movements in the crypto ecosystem.

The reason is simple: higher interest rates mean less money circulating, which puts downward pressure on risk assets like Bitcoin and Ethereum. Conversely, lower or stable rates open the door to greater investment in cryptocurrencies, as it becomes more attractive to seek alternatives to the traditional financial system.

Three possible scenarios are being considered:

1. Rates unchanged: the market could move sideways or with a slight upward momentum.

2. Unexpected reduction: likely surge in cryptocurrency prices.

3. Surprise increase: sharp decline in crypto and traditional markets.

Additionally, the FOMC meeting will influence the direction of the digital dollar (CBDC), a state currency that could change the way we understand money. This raises a dilemma between greater financial control and the push for decentralized systems like DeFi.