Bitcoin And Crypto Ahead Of The Fed Hike Announcement – What to Expect

Today’s Federal Reserve (Fed) FOMC meeting could decide the fate of crypto and Bitcoin for the coming weeks and months. As NewsBTC has reported in recent weeks, financial markets around the world are hanging on every word from the Federal Reserve to predict future policies. Currently, there is little doubt that the FED will raise the interest rate by 75 basis points (bps) today, which would be the fourth consecutive hike. However, for the next meetings in December and January, the futures market is divided. To that extent, the main focus of today’s session will be on the signals that the FED sends with regard to a possible slowdown in the pace of rate hikes. Currently, the market assumes a 50% probability of a rate hike of 75 basis points in December. Related Reading: Fed Could Hike Interest Rates By 75 BPS, Here’s What It Means For Bitcoin Hawkish Or Dovish? As in previous meetings, Jerome Powell, Chair of the Federal Reserve, will probably not want to signal that a slowdown in the pace of rate hikes signals an earlier end to tightening or a lower peak rate. Dovish signals could be associated by the market with a slowing of the December rate hike by as little as 50 basis points. In a note to clients, Chris Weston, head of research at Pepperstone, wrote: In the Fed’s view, putting the U.S. into a recession is still a lesser evil than not tackling entrenched price pressures. It seems highly unlikely that the F...