Exploring the latest updates in the world of cryptocurrency, analysts from QCP Capital have shared their insights on what to expect in the crypto market ahead of the crucial FED rate decision scheduled for tomorrow.
As anticipation builds for the release of the May Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) meeting, cryptocurrency investors are taking measures to reduce the risk in their portfolios. Market sentiment has shifted towards a risk-off approach as investors await the outcome of the FOMC meeting, where the Fed is expected to reveal its projections for interest rate cuts for the rest of 2024 through the Dot Plot tool.
Despite the current challenges, QCP suggests that this could be a favorable time to accumulate digital assets. They point to positive developments such as the potential launch of an ETH spot ETF and the ongoing political discourse between President Biden and former President Trump as factors that could fuel optimism in the crypto market.
With the FOMC set to announce its interest rate decision tomorrow, there is speculation that rates will remain unchanged following a strong employment report. Market indicators, such as the CME FedWatch Tool, predict a high likelihood of steady interest rates, with a 99.4% chance as of Monday.
While the FOMC had initially projected three interest rate cuts for the year in December, FED President Jerome Powell has emphasized the uncertainty surrounding these projections. The central bank remains cautious and is prepared to wait until it is confident that the economy has stabilized.
Please note that the information provided is not investment advice. For those interested in trading over 300 cryptocurrencies, consider registering with Binance exchange using this link for a 20% commission discount. Stay updated with exclusive news, analytics, and on-chain data by following our Telegram and Twitter accounts.
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