Will US FOMC Trigger Volatility In The Crypto Market?

The crypto market now eagerly awaits the US FOMC and Fed Chair Jerome Powell’s speech as optimism soars after Donald Trump’s presidential win.

The crypto market is now eagerly awaiting the US FOMC and Fed Chair Jerome Powell’s speech as optimism soars after Donald Trump’s presidential win. Investors are betting on a 25 bps Fed rate cut later today, with many expecting these developments to send Bitcoin price to $100K soon. However, despite that, some have issued warnings over the event’s potential to spark volatile trading in the market.

So, here we explore the potential factors that could impact the BTC rally in the coming days.

Investors are now eagerly awaiting the upcoming US FOMC meeting which is expected to reveal the latest decision on the federal interest rates. In line with market expectations, many are anticipating a 25 basis points cut by the US central bank.

Meanwhile, this development is also likely to influence the market sentiment, especially among crypto traders who have been closely following the Bitcoin price rally in recent weeks. For context, the BTC price surged past the $18K levels on Monday, November 21, 2023.

Now, as the market anticipates a rate cut, many are expecting the Bitcoin price to rally further towards the $100K mark. In fact, some crypto market experts have highlighted the possibility of BTC price reaching $300K by the end of 2024.

However, despite this optimism, some crypto market experts are urging investors to proceed with caution and be prepared for potential volatility in the coming days. For instance, crypto market expert and Bitcoin Maxi AlphaBTC remained cautiously optimistic, while expecting a quarter-point cut by the Fed.

He noted that Jerome Powell’s note will play a key role in shaping the market sentiment ahead. A hawkish tone could signal recession fears, while a dovish stance might help the “TrumpRally” to continue.

Moreover, Powell’s view on the newly elected US President Donald Trump will be also watched closely, especially as Trump has criticized the central bank several times before. On the other hand, Elon Musk’s D.O.G.E. initiative is likely to target the US Fed in the coming days, sparking market optimism. It has also fueled discussions over a robust Dogecoin price rally in the coming days.

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