The crypto market is eagerly awaiting the next FOMC interest rate decision from the US Federal Reserve this week. This is one of the highly anticipated events this week, which is expected to shape sentiments in the digital asset space, potentially paving the way for Bitcoin and other altcoins. Although the market expects a dovish stance from the central bank, any other move could trigger selling pressure in the market.
Crypto market enters crucial week with FOMC taking priority
The crypto market enters a crucial week with a series of scheduled events that could shape the future of digital assets. Among them, market participants are eagerly awaiting the next FOMC meeting to learn the central bank’s position regarding its monetary stimulus plans.
In particular, concerns have increased in recent days over a possible pause in the U.S. Fed’s rate cut plans, particularly with economic data weighing on trader confidence. However, the latest US jobs report appears to have shrugged off concerns, while consolidating bets towards a 25 basis point Fed rate cut next week.
The latest jobs data showed weaker job creation in the United States in October, with the unemployment rate remaining unchanged from September. That has fueled hopes of two more rate cuts this year, one next week and another in December. According to the CME FedWatch tool, there is about a 99% chance that a 0.25% decline will be seen in November.
This has also raised investors’ hopes for a possible rise in the price of Bitcoin and other leading altcoins. Usually, falling interest rates increase investors’ appetite for risk, potentially benefiting digital assets, stocks, gold, and other risky assets.
Will Bitcoin and Altcoins Rally?
Crypto market participants expect the upcoming FOMC to trigger a rise in Bitcoin and altcoin prices. Additionally, the US presidential election, scheduled for November 5, will also play a key role in the future of the broader financial markets, not to mention the digital asset space.
In particular, the market expects potential bullish momentum for crypto, regardless of the victory of Donald Trump or Kamala Harris. Although the market expects Donald Trump’s victory to provide further momentum to the crypto market, recent Bitcoin price analysis suggests that Kamala Harris’ victory could also propel a market rally.
On the other hand, historically, Bitcoin tends to show positive performance in the fourth quarter of the year. That said, the market expects a similar performance in 2024, while many expect other altcoins to follow suit.
However, many in the crypto community have also warned of potential market volatility due to the upcoming US elections. Given this, investors should exercise due diligence when betting on assets.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. Its role involves publishing articles, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting relevant economic information. Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with diverse audiences.
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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