FOMC Meeting today ..
The Federal Reserve is expected to keep interest rates unchanged today, with a 97.4% probability of no change, according to CME FedWatch. However, there's a small chance of a surprise interest rate cut, which could significantly impact the crypto market.
Possible Scenarios:
- Interest Rate Cut: A surprise rate cut could lead to massive gains in stocks, real estate, and cryptocurrencies, as lower interest rates benefit riskier assets. This could reignite momentum for digital currencies like XRP and ADA.
- No Change in Interest Rates: If the Fed keeps interest rates unchanged, the crypto market might experience volatility based on the Fed's commentary on the economy and future policy. A dovish stance could fuel a sharp move upwards for Bitcoin and altcoins.
Impact on Crypto Market:
- Lower Interest Rates: Generally benefit risk assets, potentially boosting cryptocurrency prices.
- Higher Interest Rates: Make traditional investments more attractive, potentially leading to a crypto market pullback.
- Stable Interest Rates: Provide a sense of calm, allowing the crypto market to perform based on its own fundamentals.
Some analysts predict that even if the Fed doesn't cut rates today, the first rate cut of 2025 is expected in September, priced in at 61%. This could be a catalyst for the next big rally in digital assets
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