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US Fed Meet News: Amidst an encouraging upturn in cryptocurrency prices in January, the Fed Committee is about to announce its decision on interest rates. The market expects to see a 25 basis point increase in February, after a 50 basis point increase in December 2022. As a result of the rise, the rate of increase slowed to 4.25% to 4.5%. As an immediate response, the negative response with all cryptocurrencies is declining in value.
This time around, if the Federal Open Market Committee (FOMC) raises rate in line with market expectation, odds are that the crypto prices would eventually go down after the subsequent Jerome Powell press conference. According to Bloomberg economists, Powell may be tempted to make a strong statement on further increases in March and April. This reflects the broader objective of the Federal Reserve to return inflation to the 2 per cent target.
Crypto Market Sentiment
Before the FOMC meeting later today, the crypto market is trading in the green, with Bitcoin (BTC) increasing by approximately 0.60% in the past 24 hours. However, given the environment surrounding past meetings, there may be a decrease in scheduling preparation.
How Much The Fed is considering an interest rate hike in 2023.
As inflation has slowed over the past few months, the Fed will announce its action plan for the coming months. Nevertheless, inflation is now higher than the 2% target.
