The post How the FOMC Meeting Could Impact Bitcoin and Crypto Markets appeared on BitcoinEthereumNews.com.

The meeting starts January 28 and last two days It’s the first meeting since Donald Trump became the new U.S. president FOMC policies can impact the crypto market Lasting two days and starting on January 28, the FOMC (Federal Open Market Committee) meeting is always a potentially volatile time for the crypto world. This holds true even more so for this particular one since it will be the first meeting since Donald Trump’s return to the presidency. Regarding the meeting, while fixed income markets foresee potential interest rate cuts in 2025, the anticipated reduction is expected to be limited. Also, the U.S. Federal Reserve policymakers are likely to hold interest rates steady. However, considering Trump’s policies include raising import taxes and advocating for interest rate cuts by the Federal Reserve, it’s hard to predict what exactly will happen. One thing is for sure, though – all of this is going to impact the crypto world, in one way or another. How Interest Rates Could Impact Crypto If interest rates are cut, investors could have more liquidity to deploy elsewhere, leading to an increase in the price of Bitcoin and other currencies. Since limited cuts are generally expected, it could also mean less liquidity, which could result in market stagnation and possibly even a wider sell-off. We’re already seeing some prices drop, including Bitcoin. The upcoming FOMC meeting arguably has at least something to do with it due to the anticipation of what will happen during the upcoming two days. Related: Trump’s Crypto Reserve Sparks Debate: XRP or Just Bitcoin? In addition, the Federal Reserve is known for sharing statements after FOMC, which could also shake up the market. Though with Trump in office, it’s safe to assume the outlook will be positive. What is FOMC? The Federal Open Market Committee…

---

Filed under: News - @ January 27, 2025 9:19 pm