Key Points
- The Federal Open Market Committee (FOMC) meeting could have a significant impact on the cryptocurrency market.
- Crypto analyst Ash Crypto predicts a potential price spike in the crypto market following the meeting.
Today is a significant day in the financial market, and it could be a historic one for cryptocurrencies. The Federal Open Market Committee (FOMC) is meeting today, and many, including crypto expert Ash Crypto, believe this could be the most important meeting in four years.
Impact of FOMC Meeting on Crypto
Investors are closely watching the outcome of the meeting as the US Federal Reserve (Fed) is expected to implement its first interest rate cut since March 2020. Ash Crypto suggests that the market anticipates a rate cut of 50 basis points (bps), which could be a bullish signal for the crypto ecosystem.
A lower interest rate could potentially increase the demand and prices of cryptocurrencies. However, the focus will be on Jerome Powell’s speech, as his words could determine the market’s direction.
If the Federal Reserve Chairman mentions any risk factor regarding recessionary pressures, the crypto market could experience a quick price dump. However, if Powell’s speech is positive and he talks about cutting interest rates, it could have a significant positive effect on the crypto market.
Interest Rates and Crypto Market
Many top banks predict that interest rates will decrease in 2024, with predictions between 1% and 1.25%. This expected change in monetary policy and global availability of cash could make it easier for people to invest in riskier assets like Bitcoin and other cryptocurrencies.
Ash Crypto is confident that the fourth quarter will be more bullish for the crypto market, as current conditions seem to align with this prediction.
Bitcoin’s Future
Before making his post, Ash Crypto predicted that Bitcoin could reach $100,000 to $150,000. He noted that BTC has bottomed out and the crypto market could soon experience a major bull run.
Bitcoin has continued to trade sideways since March, consolidating between $71,000 and $53,000. If the major support at around $52,000-$53,000 price levels holds, the chances of a major price dip will be curbed. This could allow the price to continue the pattern seen in the past two bull runs.
For a spike to the predicted $100,000 range, a breakout of the six-month-long consolidation (since March) is needed. Perhaps bullish news from FOMC today could trigger this move.
However, the 200-day simple moving average could potentially serve as resistance to further price growth as it is currently above the price. Thus, major bullish news is expected to encounter various resistance at different price levels; overcoming this is important for a sustained BTC rally.
