The post Bitcoin and altcoins react to FED’s rate decision appeared on BitcoinEthereumNews.com.

Bitcoin, the poster child of decentralization, is always on the radar of centralized institutions. Despite its decentralized nature, BTC price movements are affected by regulatory changes, affecting the Altcoins that are heavily dependent on Bitcoin. Clarity in regulatory news can often increase people’s willingness to use and invest in cryptocurrencies. However, uncertainties or stricter regulations can encourage them to unload investments and force the market into erratic turns. Regulatory impact is always on the minds of market participants, which is why breaking it down into its core components is crucial for understanding the overall market sentiment. Recently, The Federal Reserve retained interest rates securely within their current span of 5.25-5.5% but updated its outlook for reductions to merely one trim in the second quarter of 2024. Fed Chair Jerome Powell addressed at a press meeting that the financial institution still needs to feel more confident to decrease rates, even as inflation has softened from its peak levels. Members of the central bank’s policy-making body noted there had been “modest” additional advancement towards attaining their target of two percent inflation. Let’s examine how the FED’s rate decision can impact the market. Why can the FOMC decision impact financial markets? The Federal Open Market Committee plays a role in the United States financial markets. The decisions made by the FOMC, such as changing interest rates or implementing easing measures, shape the overall economic landscape, where banks, investment firms, and other financial institutions operate based on the policies set by the FOMC. As a result, these policies impact various financial sectors, like stocks, bonds, and cryptocurrencies, influencing how investors strategize and market trends unfold.  Liquidations in the Crypto market In the two days, the cryptocurrency markets have had significant ups and downs, leading to forced sales of almost $400 million. Bitcoin reached a…

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Filed under: News - @ June 13, 2024 1:18 pm