Experts Predict US Fed’s Dovish Stance In FOMC; Bitcoin Bull Run Ahead?
Tech companies have been posting higher than expected earnings amid rising concerns around the financial health of the First Republic Bank. Although the huge drop in the regional bank’s stock price catapulted a Bitcoin price jump on Wednesday, the volatility remains high. Meanwhile, the U.S. Federal Reserve is set to announce its interest rate decision when the Federal Open Market Committee (FOMC) meets between May 1-2, 2023. Hence, the crypto market could remain volatile in the days to come, as the financial markets expect the central bank to finally show signs of relaxing it’s monetary policy.
Also Read: US Sen. Ted Cruz Reveals Bitcoin Investment Strategy, Declares Ultra-Bullish Outlook
A majority of the S&P 500 companies have been beating expectations, on the back of cost cutting measures like mass layoffs. For instance, Mark Zuckerberg led Meta, which is also heavily invested in the Web 3.0 space with the Metaverse ambition, sacked 10,000 employees in 2022 besides plans to layoff another 21,000 until November 2023. This led to a rising number of high income professionals wanting unemployment benefits, which the Fed will be closely looking at.
End Of Fed Rate Hikes?
According to Fundstrat advisor opinion on Yahoo, the upcoming FOMC meet will affect the last rate hike measures due the need for easing financial conditions. The massive surge in unemployment claims from employees with above $200,000 pay could trigger what could be a ‘dovish hike’. A 25 bps hike in the May Fed meeting could be followed by easing of financial restrictions, the advisors said. Meanwhile, an overwhelming majority of respondents to the CME FedWatch Tool expect the central bank to raise interest rate by 0.25%, from the current target rate of 4.75 to 5% range.
On the other hand, the US Dollar Index (DXY) is currently at a three month low at 101.41. Hence, going by the inverse correlation between DXY and Bitcoin price, the top cryptocurrency could be on a path to further rise in the lead up to the Fed meeting, especially so if Fed Chair Jerome Powell expresses a dovish stance after a 25 bps hike.
Also Read: Binance’s New Initiative On Polygon Aims to Woo US Customers Amid Regulatory Scrutiny
- Breaking: 21Shares Amends Sui ETF with Staking, Nasdaq Listing, Other Key Details
- Binance’s Changpeng Zhao Takes on Senator Elizabeth Warren On False “Fraud” Allegations
- Trump Tariffs: Crypto Market Volatility Looms As US President Terminates Trade Talks With Canada
- Coinbase CEO Says Market Structure Bill Will Pass by Year-End Despite Government Shutdown
- Breaking: Trump To Meet China’s President On October 30, Bitcoin Bounces
- Dogecoin Price Crash Looms as Flag, Death Cross, Falling DOGE ETF Inflows Coincide
- Solana Price Prediction as Osprey’s S-1 Filing and Hong Kong’s ETF Launch Fuel Reversal Hopes- Is $250 Next?
- Ethereum Price Poised for Breakout as Wyckoff Re-Accumulation Meets BlackRock’s $110M Purchase
- BNB Price Prediction as Analysts Eye $1500 Ahead of Fresh Coinbase and Robinhood Listings
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
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.
