US Federal Reserve to Announce Interest Rate Decision Tonight
This evening at 9:00 PM Turkey time, the US Federal Reserve will announce its interest rate decision. Market analysts believe that the Fed will keep its policy rate unchanged for the last time and provide positive signals for September.
Changes Coming to Fed Interest Rate Policy
The Federal Reserve’s interest rate policy, which has become one of the main agenda items in the cryptocurrency market, is soon to change. Following the tightening due to Covid, the Fed is preparing to start a new era with an interest rate cut after a long time. With the loosening monetary policy, capital inflows are expected to move towards the cryptocurrency market.
Experts Predict Last Policy Rate to Remain Unchanged
Experts believe that the Fed will keep its policy rate unchanged at 5.5%. According to surveys and compiled expert opinions, there is an 85% probability that the Fed will implement its first interest rate cut in September.
Impact on Bitcoin Expected
Today’s interest rate decision announcement may cause short-term volatility in Bitcoin (BTC) prices. The FOMC meeting scheduled for 9:30 PM Turkey time will also determine the future direction of BTC.
Bitcoin’s Direction Could Be Determined by the Fed Decision
The Federal Reserve, last year in July, raised interest rates and has kept them steady since then. By holding the policy interest rate at 5.5%, they have managed to reduce inflation. In the US, inflation has decreased to an annual rate of 3.0%. The Fed’s target is to bring inflation down to an annual rate of 2.0%. Although Fed Chairman Jerome Powell mentioned that the target is not fully met, a decrease in inflation is necessary.
In the US, interest rates will remain at 5.5% for another month. The cryptocurrency market is more focused on what Fed Chairman Jerome Powell will say rather than the interest rate decision. It is expected that Powell will signal a rate cut tonight and point towards September.
Bitcoin may rise above $68,500 during the day. A positive speech by Powell will prepare the market for September.
The Potential Impact of a Positive Fed Evening on Bitcoin
As a result, a positive evening for the Fed could once again bring Bitcoin face to face with the $70,000 resistance level. If Bitcoin surpasses $70,000, it could potentially move towards its all-time high.
