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US Fed Meet News: In the backdrop of an encouraging price recovery for cryptocurrencies in January, the Fed’s committee is set to announce its interest rate decision. The market is expecting a 25 bps rate hike in February, following a 50 bps rise in December 2022. The hike meant slowdown in pace of rate hike, bringing the funds rate at 4.25-4.5% range. As an immediate reaction, the responded negatively with all cryptocurrencies dropping in value.
This time around, if the Federal Open Market Committee (FOMC) raises rate in line with market expectation, odds are that the crypto prices would eventually go down after the subsequent Jerome Powell press conference. According to Bloomberg economists, Powell could be inclined to give out a hawkish statement about further hikes in March and April. This is considering the Fed’s larger goal of bringing down inflation to the 2% target.
Crypto Market Sentiment
Ahead of the FOMC meet later today, the crypto market is trading in the green, with Bitcoin (BTC) up by around 0.60% in the last 24 hours. However, considering the environment around previous Fed meetings, there could be a dip in the lead up to the schedule.
How Much Rate Hike Fed Has In Mind For 2023
In the context of softening inflation in recent times, the Fed will be announcing its plan of action for the months to come. Still, the inflation is currently above target of 2%.
