All Eyes on Upcoming FOMC Meeting as Bitcoin Expected to Rally
- On March 21st and 22nd, the Federal Open Market Committee meeting is scheduled.
- The cryptocurrency’s price may see a fall before the FOMC meeting.
An optimistic result for the cryptocurrency market at the forthcoming Federal Open Market Committee (FOMC) meeting is possible given the continued banking crisis and macroeconomic worries in the United States.
On March 21st and 22nd, 2023, the Federal Open Market Committee will convene to discuss how best to achieve the central bank’s longer-term aim of reducing inflation to its target rate of 2%. Yet, the recent failure of Silicon Valley Bank, along with other banks, presents an immediate difficulty in the shape of a banking crisis.
Furthermore, in February 2023, the CPI increased by 0.4%, and it increased by 6% over the course of a year. But, investors’ worries about a domino effect have caused the KBW Nasdaq Bank Index to drop by 27.62 percent over the last two weeks.
High Volatility Expected
Moreover, the result of the FOMC meeting should address the dual challenges of lowering inflation and averting a financial crisis that might have knock-on effects throughout the economy.
More likely than not (63%), according to the CME FedWatch Tool that predicts the Federal target rate at the forthcoming FOMC meeting, is a 25 bps rise. In this scenario, a 25 bps rate rise followed by a dovish Fed mood is seen as potentially catalyzing a Bitcoin price surge to over the $30,000 threshold, according to experts. Moreover, analysts said they wouldn’t completely rule out a surge if it happened next week.
Yet, the cryptocurrency’s price may see a fall before the FOMC meeting, since this has been the historical pattern surrounding prior FOMC meetings.
