Why US Fed FOMC Meeting Is Likely To Trigger Bitcoin Price To $30K

Anvesh Reddy
March 19, 2023
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Bitcoin Price Rally Ahead As Fed Rate Cuts to Start April 1, Says Arthur Hayes

The ongoing banking crisis along with macroeconomic concerns in the United States could likely trigger a favorable outcome for the crypto market in the upcoming Federal Open Market Committee (FOMC) meeting.

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FED FOMC Meeting- What To Expect?

When the US Fed committee meets on March 21 and 22, 2023, the central bank panel will take into account its larger goal of bringing down the inflation to the 2% target. However, an immediate challenge in the form of bank crisis was caused with the collapse of Silicon Valley Bank last week.

Also Read: Whale Moves $33 Million Worth Of ETH To Binance

The consumer price index (CPI) rose 0.4% in February 2023 and 6% from a year ago. But the the KBW Nasdaq Bank Index, a benchmark stock index of the banking sector, took a 27.62% in the last two weeks as fears of contagion spread to other banks’ investors.

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US Fed Interest Rate Hike – A Pause?

The US FOMC meet’s outcome should address the dual issue of containing and bringing down inflation while also preventing a larger banking crisis, one that could be detrimental to other industries in the country. The CME FedWatch Tool, which gauges the Federal target rate at upcoming FOMC meeting, is predicting more likelihood for a 25 bps increase (63%) than a ‘no hike’ scenario. In this context, analysts believe a 25 bps rate hike followed by dovish Fed sentiment could trigger Bitcoin price rally to above the $30,000 milestone. Ted, a crypto analyst, said he would not rule out a rally in such a scenario next week.

“If we see 25bps + a dovish Fed next week, I would not be surprised to see Bitcoin trade above 30k.”

However, given the BTC price trend around previous FOMC meetings, the cryptocurrency could see some correction ahead of the meeting

Also Read: Binance Finally Responds To U.S. Regulatory Concerns; But Fails To Provide Financials

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.