Pseudonymous cryptocurrency trader Kevin recently shared his thoughts on the upcoming Federal Open Market Committee (FOMC) meeting, predicting it could have a sizeable impact on the cryptocurrency market.
What Happened: Kevin in his latest tweet emphasized the importance of the meeting, set to take place on Wednesday, as a catalyst for the next significant move in the market.
According to Kevin, the crypto market has been experiencing a “horrendous slow bleed” over the past few weeks, with most cryptocurrencies closing in the red for 15 out of the last 20 days. He attributes this lackluster performance to investors awaiting more economic data and guidance on potential interest rate cuts.
Kevin believes that the upcoming FOMC meeting will provide much-needed clarity on the future direction of interest rates. He states, "If [Federal Reserve Chairman Jerome] Powell is hawkish and takes rate cuts off the table, the market will likely fall hard and fast. The opposite will occur if he’s dovish."
Also Read: Uh Oh, Bitcoin? Crypto Expert Sees Dip Coming This Week But Recovery Shortly After
Why It Matters: The crypto trader’s comments highlight the significant influence that macroeconomic factors, such as interest rates and monetary policy, can have on the cryptocurrency market.
As investors eagerly await Powell’s outlook, the market remains in a state of uncertainty, with the potential for a sharp move in either direction. Bank of America's U.S. economist Michael Gapen foresees no immediate changes in interest rates, thereby shifting focus to the Fed's future policy actions, particularly regarding potential rate cuts.
Following the last FOMC meeting in mid-March, which saw no interest rate changes, Bitcoin BTC/USD traded 0.5% higher one day after the meeting, while Dogecoin DOGE/USD and Shiba Inu SHIB/USD surged 6% and 3% respectively.
At the time of writing, Bitcoin is trading around $60,330, down 4% on the day. Dogecoin and Shiba Inu are down 6% and 6.2%, respectively.
What's Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
