The decision was made by federal reserve The crypto market has suffered from (Fed’s) inability to raise interest rates to contain runaway inflation.
It has become a dire situation that crypto market is biased in favor of decisions made at federal open market commission (FOMC) meetings. according to market analyst Michael van de Poppe.
“Crypto is heavily skewed towards the outcome of the FOMC meeting on Wednesday, while indices are acting relatively calm. Which is the best case scenario? 1) DCA, and you have a longer view. 2) Wait for the FOMC to announce. 3) Avoid leverage trading.”
High-risk assets such as high-risk assets are often affected by interest rate increases. Bitcoin (BTC). Blockchain.News reported that Bitcoin (BTC), fell to $18.5K September 19 due to global monetary tightening fears.
The Fed is expected to raise its interest rate by 75bps (bps) tomorrow morning, September 21st. This might put further pressure on the crypto market.
Colin Wu, crypto reporter, disclosed:
“On September 21, the Fed will announce its decision to raise interest rates, and the market is expected to raise interest rates by 75bps.”
In July, similar results were witnessed after the Fed increased the interest rate by 75bps (bps) in May, which was the highest since 1994.
Mike McGlone, a Bloomberg Intelligence senior commodity strategist, stated that the Fed was using an aggressive approach to commodities and risk assets which has resulted in bearish sentiment.
Blockchain.News reported that Sam Bankman Fried, CEO of crypto-exchange FTX, had similar sentiments. Despite the fact that the federal reserve is stuck between a rock & a cliff, the Federal Reserve was driving the current crypto slump because markets and people were scared.
Although the two most popular cryptocurrencies gained momentum over the past 24 hours, it remains to be seen how the interest rate review will unfold this time around.
According to CoinMarketCap, Bitcoin and Ethereum rose by 4.7%, 4.84%, and respectively $19,332 & $1,359 during intraday trading. CoinMarketCap.