Crypto Turns Red Ahead Of Major Fed Decision Tomorrow

Nidhish Shanker
September 20, 2022
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The crypto market resumes its slide ahead of the interest rate decision tomorrow. Bitcoin has fallen below the $19K mark once again. It fell by more than 11% in the last 7 days.  After a small rally, Ethereum is falling once again and is below the $1.35K mark. The altcoins continue to tank as the Fed continues to make macroeconomic conditions remain unfavorable for crypto. 

The Federal Reserve will make a major decision tomorrow that will dictate the risk assets market. The Federal Open Market Committee will reach its decision regarding the next interest rate hike. The FOMC is the monetary policy-making body of the Federal Reserve. 

According To Bloomberg, the wall street traders are now fully expecting a 75 bps hike and have already priced in a 100 bps hike as well. The CME Fed Watch Tool highlights an 82% chance of a 75 bps hike and an 18% chance of a 100 bps hike. 

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How Crypto Traders Are Preparing For Major Fed Decision

The majority of crypto traders are completely expecting a 75 bps hike. Many experts believe that a 75 bps hike will actually lead to a crypto rally as it is completely priced in. Indeed, there is historical precedence for this price movement. 

In June, when the Fed raised the interest rates by an unusually large 75 bps hike, it led to a bloodbath in the crypto market. Bitcoin had its worst financial quarter in over a decade. However, a similar-sized hike in July had no negative impact on the market. In fact, the markets surged after an initial slide. 

JP Morgan is already calling the bottom in the risk assets market. However, if the Fed moves forward with a more hawkish 100 bps hike, the markets can fall again.

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When Will The Decision Be Made

The Federal Open Market Committee will decide on the next interest rate hike at the FOMC meeting tomorrow. The decision can be expected to be released at 8:00 AM Eastern Time or 6:30 PM IST.

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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.
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.

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
Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society's biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain.
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.