Wednesday's Fed decision poses a risk for crypto asset prices, with concerns over a less investor-friendly stance due to strong U.S. economic data and sticky inflation, LMAX Group market strategist said.on Tuesday, but the upcoming Federal Reserve meeting concluding on Wednesday is looming large over the crypto market to decide whether the correction is over.
After notching a series of fresh all-time highs over the past weeks, the largest crypto by market capitalization turned sharply lower from just shy of $74,000 on Thursday. It tumbled over 15% to below $63,000 by earlier Tuesday, dragging other digital assets lower.in the U.S. last week, which could curb the central bank's willingness to ease their monetary policy, further delaying interest rate cuts.
"The market unanimously expects rates to stay unchanged but will pay close attention to adjustments to the dot plot, as cuts may be delayed on the backdrop of persistently high inflation," said Vetle Lunde, senior analyst at digital asset analytics firm K33 Research. The dot plot is the Fed committee members' outlook on interest rates over the next year and offers investors a glimpse into policymakers' expectations.into the U.S.
"The Fed decision this week poses a risk, with concerns over a less investor-friendly policy stance due to strong U.S. economic data and inflation," Joel Kruger, market strategist at LMAX Group, said in an emailed note."While correlations between crypto and traditional assets have been low, a risk-off sentiment from the Fed decision could spill over into crypto."
Recently, BTC was changing hands at $64,500, rebounding from below $63,000 but still down 3.5% over the past 24 hours. The broad-market CoinDesk 20 Index (in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CoinDesk - 🏆 291. / 63 Read more »