Cryptocurrency markets closely watched the meeting this month, and after the decision, there was a small-scale recovery. So when is the next meeting and what did the FED signal in its latest statement? We discuss the possible impact of the cryptocurrency markets in all its details. Here are the details.
FED’s New Rate Statement
The next meeting will be in the first week of May and there is more than 1 month ahead. But the Fed is already preparing the markets for future decisions. In the statement that came in the evening today, the signal was given that an increase of more than 25 basis points could be made in the meetings. He has already said that he is targeting a figure of 2.5% with a total of 7 interest rate increases per year.
After the announcements, expectations for a 50 basis point increase in May rose to 60%. In addition, FED Chairman Powell said that the expectations announced in his latest statements may change rapidly due to current conditions. This is how we can interpret inflation, unemployment figures and interest rate expectations. The Fed has not yet begun to aggressively reduce assets, and as this happens, volatility in risk markets is expected to increase further.
Bitcoin and Altcoins
With the statements made, Bitcoin burned its 15-minute red candle. Bitcoin price slackened from the $41,110 levels to the 40,800 band and is above $40,900 at the time of writing. On the other hand, at the meeting held this month, no signal was given for a 50 basis point increase. Considering that Bitcoin remains strong due to the 25bp increase, there is also the risk of starting a downward movement in the short term.
Popular cryptocurrencies such as Ethereum and BNB continue to remain positive despite the latest statements. The S&P 500 turned negative with the rate announcement. Federal Reserve Chairman Jerome Powell continues to make statements at the National Association for Business Economics’ annual conference on economic policy. Altcoin investors should be cautious against the possibility of Bitcoin falling further in the coming minutes.