2022-08-01 20:21:44
Fed meeting tomorrow. Why is it important for the crypto market.
On July 27, a regular meeting of the US Federal Reserve Service is taking place, at which a decision may be made to raise the rate by 75 basis points (b.p.). .1% with a target level of 2%), the Fed will immediately raise the rate by 100 bp. which would be the largest increase since the early 1990s.
In March 2022, for the first time since 2018, the Fed raised the rate by 25 bp. up to 0.25–0.5% per annum. Then, on May 4, the rate was raised immediately by 50 (bp).
And in mid-June, the rate was raised by 75 basis points for the first time since 1994: at the last meeting, the Fed raised the interest rate to 1.5-1.75% per annum, which was the most significant increase in the last 28 years.
Currently, the US futures market is setting a 75 bp rate hike, which has already been priced in by cryptocurrency market participants in digital asset prices.
Such an increase is unlikely to cause a strong price decline, but at the time of the release of data and comments from the Federal Open Market Committee of the US Federal Reserve (FOMC), the volatility of bitcoin and other cryptocurrencies may increase.
Raising the rate by 100 bp also possible, although market participants generally do not expect such a high increase. If the monetary policy is aggressively tightened with a 1% rate hike, it will cause stock markets and digital assets to fall,
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