The Crypto Market Awaits the US Federal Reserve's Upcoming FOMC Interest-Rate Decision

The crypto market eagerly awaits the upcoming FOMC interest-rate decision by the US Federal Reserve this week. One of the highly anticipated events this week

The upcoming FOMC interest-rate decision by the US Federal Reserve is being eagerly awaited by the crypto market this week.

One of the highly anticipated events this week is expected to shape the sentiments in the digital assets space, potentially setting the path for Bitcoin and other altcoins.

The digital asset market reacted positively to the Fed rate cut decision by 0.5% points in the recently concluded FOMC meeting. Now, as the unemployment rate remained unchanged from September despite weaker job creation in the US in October, hopes are being fueled for two more rate cuts this year, one in the next week and the other in December.

According to the CME FedWatch Tool, there is about a 99% chance of a 0.25% point cut in November. The crypto community is anticipating the upcoming FOMC to trigger a rally in Bitcoin and altcoin prices. Besides, the US Presidential Election, scheduled for November 5, will also play a key role in shaping the future of the broader financial markets and the digital assets space.

Historically rate cuts have been favorable to crypto markets. With the Fed reducing rates again, a similar uptrend could be on the horizon for crypto assets. This could be a new bullish chapter for crypto as the combination of a lower interest rate environment, the bitcoin halving, the growing accessibility of spot ETFs, and favorable seasonal trends could lead to an exponential growth of digital assets.

However, many in the crypto community also warned over potential volatility in the market due to the upcoming US election. Also, the broader economic implications of a Fed’s policy shift might lead to uncertainty, if inflationary pressures resurface or if the rate cut signals deeper concerns about economic stability. Hence investors should closely watch the Fed’s moves and weigh the potential benefits against the risks.

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