{"id":598651,"date":"2024-03-19T13:00:38","date_gmt":"2024-03-19T13:00:38","guid":{"rendered":"https:\/\/uniquehot.com\/?p=598651"},"modified":"2024-03-19T12:15:36","modified_gmt":"2024-03-19T12:15:36","slug":"fomc-preview-bitcoin-crypto-fed-rate-move","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/fomc-preview-bitcoin-crypto-fed-rate-move\/","title":{"rendered":"FOMC Preview: Bitcoin and Crypto’s Fate Tied To Fed Rate Move"},"content":{"rendered":"

In the lead-up to the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, March 20, the Bitcoin and crypto market is experiencing a severe downtrend. BTC price has plunged roughly -10% in the past two days, and Ethereum (ETH) is down -12% in the same period.<\/p>\n

The anticipation surrounding the Fed’s stance on interest rates has heightened in the wake of recent economic indicators, including unexpected spikes in the\u00a0 US Consumer Price Index<\/a> (CPI) and Producer Price Index (PPI), stirring volatility across markets, including digital assets.<\/p>\n

The consensus, with a 99% probability according to the CME FedWatch tool, suggests interest rates will hold steady. Nonetheless, the spotlight turns to the Fed’s dot plot, a graphical representation of the individual members’ expectations for future interest rates, which could provide crucial insights into the monetary policy outlook for the coming months and years.<\/p>\n

\"CME
Target Rate Probabilities | Source: CME FedWatch Tool<\/a><\/figcaption><\/figure>\n

Anna Wong, Chief US Economist for Bloomberg, remarked via X (formerly Twitter), \u201cAnother reason why FOMC [is] not ready to cut: members not yet of broad agreement of that need. Here\u2019s visualizing the dispersion of FOMC views with the help of our new weekly NLP Fed spectrometer. \u201c<\/p>\n

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Another reason why FOMC not ready to cut: members not yet of broad agreement of that need. Here\u2019s visualizing the dispersion of FOMC views with the help of our new weekly NLP Fed spectrometer. (Interactive version at @TheTerminal<\/a> BECO models \u2014> Fedspeak \u2014> spectrometer) pic.twitter.com\/Kney89BERM<\/a><\/p>\n

— Anna Wong (@AnnaEconomist) March 19, 2024<\/a><\/p><\/blockquote>\n