Last 2 Days of the FED Interest Rate Decision Affecting Bitcoin and Cryptocurrencies: What to Expect?

While the US Federal Reserve (FED) is expected to announce one of its most critical data on January 31, eyes are turned to the cryptocurrency market.

The Fed will announce its first interest rate decision of 2024 on Wednesday, January 31. According to CME FedWatch Tool data, there is a 97.9% chance that the Fed will keep interest rates steady on Wednesday.

On the other hand, the probability of the FED cutting interest rates next March is predicted to be 48% for now. The expectation of a rate cut, which is extremely important for the cryptocurrency market and other risk assets, has been dragged into uncertainty in recent weeks with the geopolitical crises around the Suez Canal.

If the Suez Canal incidents, which caused a macroeconomic rift, are resolved in the coming days, this will probably strengthen the possibility of a rate cut by the FED in March.

However, even if the rate cut does not come in March, it is expected to be implemented by May at the latest. CME FedWatch Tool data gives a 50.1% chance of a 25 basis point rate cut for May.

In December last year, the FED signaled that it would cut interest rates 2 times in 2024, and this signal naturally reflected positively on the cryptocurrency market.
#ContentSta # BountyCreator # GateioBountyCreator # NewsMessenger # GateLive
# contentstar # MyFancyCreato