“Will Bitcoin’s price soar to new heights following Powell’s speech, or will it face a setback? Crypto enthusiasts eagerly await the market’s reaction to this influential event.”
The outcome of the upcoming Federal Open Market Committee (FOMC) meeting by the U.S. Federal Reserve could potentially have a minor impact on stock prices and the price of Bitcoin. However, it is the subsequent comments on the US economic outlook by Fed Chair Jerome Powell that will be key for traders looking for market-moving indications.
Traders and investors are currently confident about a pause in the interest rate hike in the upcoming FOMC meeting. However, there is still the possibility of a rate hike in the December meeting, which leaves room for prior warnings from Federal Reserve officials. In recent meetings, the officials have made sure that the markets don’t get carried away with the softening monetary policy stance. Powell has warned that a majority of central bank officials believe it is appropriate to raise rates further if necessary, based on incoming data on inflation and unemployment.
According to the CME FedWatch Tool, there is little expectation that the Fed will change the Federal target rate in the upcoming meeting. However, there is a 19.8% probability of a 0.25% rate hike from the current range. Therefore, any signs of rate hike decisions for upcoming meetings in Powell’s speech could potentially trigger a reaction in Bitcoin prices, as well as in the S&P 500 and Nasdaq Indices.
Earlier reports have suggested the possibility of a pause in the BTC price rally, based on on-chain developments such as profit booking by short-term Bitcoin holders. It remains to be seen if the top cryptocurrency fails to break resistance around the $35,000 level in the coming week.
In conclusion, while the outcome of the FOMC meeting may have a minor impact on stock prices and the price of Bitcoin, it is the comments on the US economic outlook by Fed Chair Jerome Powell that will likely hold the key for potential market-moving indications. Traders will be watching closely for any signs of rate hike decisions in Powell’s speech, which could impact Bitcoin prices and other market indices.