Fed’s Decision Has No Impact on Crypto Market – Yet!

• The Federal Reserve of the United States (Fed) raised the funds rate by 25bp
• The market priced in several rate cuts until the end of the trading year, but Jerome Powell dismissed this
• The press conference did not move markets, as Bitcoin traded in a tight range post-decision

Federal Reserve Raises Funds Rate

The Federal Reserve of the United States (Fed) delivered its interest rate decision yesterday, raising the funds rate by another 25bp. Chair Powell hinted at the end of the tightening cycle.

Market Prices In Rate Cuts Despite Powell’s Dissent

Despite that, market participants priced in several rate cuts until the end of the trading year – something that Powell dismissed completely. There is always a struggle to find balance between appropriate monetary policy decision and how it should be delivered to markets.

Crypto Market Unmoved Post Press Conference

The press conference did not move markets either, as cryptocurrency prices were mostly unmoved following Jerome Powell’s statement. The US dollar traded in a tight range and Bitcoin was no exception and is still trading at levels seen at start of April.

Focus Shifts To Jobs Report On Friday

The focus shifts now to jobs report on Friday, which will provide further insight into labor market conditions and consumer confidence levels.

Conclusion All in all, despite some initial confusion about Fed’s intentions after its decision yesterday, crypto investors seem to be taking a wait-and-see approach before making their next moves on cryptocurrency markets.