The markets hold their breath before the decision of the FOMC of the Federal Reserve today. Crypto is no exception. Bitcoin and Ethereum have already started to contract, reflecting wider tension through risk assets.
With still rate drops in the table, cryptographic investors are asking unanimously: WTF is this traitor guy in the fed chair at Jerome Powell?!? Reduce rates; People’s life is at stake here (and also my bags).
Common consensus among experts is that not reducing rates will be too slow and too late AGAIN.
He has the possibility of repairing his mistakes and cutting preventively. He had no problem cutting to help Biden. It seems that the lack of rate drops is a pure policy.
Here is our prediction for the next FOMC decision today:
FOMC decision today: this will happen after Powell refused to cut
To understand why Powell should reduce rates, zoom and look at the American economy as a whole:
- Downward energy prices (especially oil)
- Inflation has disappeared (2.39%)
- J Powell refuses to reduce rates anyway, making the American economy to endless stagflation, ostensibly, to spoil Trump.
People should protest on the streets.
(X))
The reduction rates take approximately 12 months to considerably affect the economy. Powell must absolutely start to reduce now, especially since China has just reduced rates by 10 points and lowered the 50 -point banking ratio.
Meanwhile, assets at risk ensure a crack in the posture of the Fed. A flashed of softening and crypto could tear. So far, Fedwatch does not yet say changes, but everyone knows that it is not today’s movement – this is the signal that counts.
Bitcoin bordering above, testing the resistance
Bitcoin bounces between $ 93,000 and $ 97,000 all week, oscillating nearly $ 96,490 on global charts while negotiating a little cheaper in India at $ 94,875.
The next real test is at $ 97,900. Break this, and $ 100,000 is not far away. Support has about $ 93,700.
(Cryptonorist))
ETH pushed $ 1,830 on Wednesday, not an escape, but did not go back either. It holds the line of $ 1,800, a level of 99Bitcoins watches closely.
Altcoins like Ripple, Chainlink and Avalanche also move, if only slightly. It is not euphoria but everyone can say that it is calm before the storm.
Outlook and what is the next step
Despite the increase in tensions in the American economy, the market capitalization of cryptography added 1.5%, now affecting 2.98 billions of dollars. However, altcoins are not going out quickly – trading in both directions that could lead to an accident after the FOMC.
The American government feels in contradiction with itself:
- The economic slowdown arrives; Price impacts probably start to be felt by companies.
- The slowdown will result in layoffs, which will lead people to withdraw money from stocks / crypto.
- A drop in rate would inject essential liquidity but that will not happen
Of course, this is the worst case, but for the moment, the market vacillates on a cliff.
Discover: Best ICO ICO even to invest in 2025
Join the 99Bitcoins News Discord here for the latest market updates
Key dishes to remember
-
The markets hold their breath before the decision of the FOMC of the Federal Reserve today. Crypto is no exception.
-
The reduction rates take approximately 12 months to considerably affect the economy. Powell must absolutely start to cut now.
The post-FOMC decision today: Bitcoin breaks $ 97,500 while altcoins are struggling to follow their appearance on 99Bitcoins.