Sun 03 Nov 2024 ▪
3
min read ▪ by
The cryptocurrency market is holding its breath as the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting approaches. Investors are closely watching signals of a possible interest rate cut, an event that could catalyze further momentum for Bitcoin and the entire industry.
The FOMC at the heart of crypto market expectations
The next FOMC meeting, scheduled for this week in Washington, will focus all the attention of crypto market players.
According to the CME’s FedWatch tool, the probability of a 25 basis point rate cut now stands at 99%, a prospect reinforced by the latest US economic data, notably the slowdown in job creation in October.
Recent economic indicators, notably the stability of the unemployment rate and the slowdown in inflation, support the thesis of imminent monetary easing. This orientation could mark an important turning point after the period of monetary tightening which weighed on risky assets.
The anticipation of more accommodative monetary policy is sparking growing optimism among crypto investors, traditionally sensitive to market liquidity conditions. A fall in interest rates would tend to favor risky investments at the expense of safe haven assets.
Promising prospects for Bitcoin and Altcoins
Monetary easing by the Fed could thus trigger a new bullish phase for the entire crypto market. Historically, periods of accommodative monetary policy have coincided with a significant recovery in cryptocurrencies, led by Bitcoin.
The American political context, with the presidential election in November 2024, also adds an additional dimension to the equation. Analysts anticipate a positive impact on the cryptocurrency market regardless of who wins, although a Republican victory is considered particularly favorable for the sector.
The fourth quarter, traditionally favorable for Bitcoin, combined with a potential drop in rates, could thus create the ideal conditions for a general market recovery. Altcoins, generally more volatile, could amplify this upward movement.
In summary, the convergence of an accommodating monetary policy and the American electoral cycle outlines a promising horizon for the crypto market in 2024. Nevertheless, caution remains necessary in the face of the volatility inherent in this asset class, particularly in periods of political uncertainty.
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Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.
