Fed’s Decision Leaves Crypto Market Unmoved – What Now?
• The Federal Reserve of the United States (Fed) raised its funds rate by 25bp yesterday, yet the US dollar and cryptocurrency markets have remained relatively unchanged.
• Fed Chair Jerome Powell hinted that the tightening cycle might be coming to an end, yet this was dismissed by market expectations.
• Despite the importance of this meeting, no significant changes were seen in either market as Powell delivered a balanced press conference which satisfied both bulls and bears.
Federal Reserve Raises Funds Rate
The Federal Reserve of the United States (Fed) delivered its interest rate decision yesterday. It raised its funds rate by 25bp, another step in their tightening cycle. This was expected by many analysts and investors prior to the announcement.
Jerome Powell Hints At End Of Tightening Cycle
Chair Jerome Powell hinted at the end of the tightening cycle during his press conference after the decision was announced. However, despite his statements, markets still expected further rate cuts before the end of this year – something which he dismissed completely.
Crypto Market Remains Unchanged
Despite all this movement and discussion surrounding monetary policy decisions, there has been no significant impact on either US dollar or crypto markets so far. Bitcoin prices have remained in a tight range since the start of April while other digital assets are also trading close to their pre-announcement levels.
Powell Delivers Balanced Press Conference
Chair Powell delivered a great press conference that left no doubts about the Fed’s intentions and satisfied both bulls and bears equally. As a result, neither side had any strong reaction to his statement leading to very little movement across these markets post-announcement .
Focus Shifts To Jobs Report On Friday
Now attention turns towards Friday’s jobs report which is likely to provide more insight into how these two markets will react going forward given that it provides more concrete data about economic conditions than mere statements from policymakers do .
