"The fear is, will the price of crypto go up and down so fast that we can see it?"
The entire cryptocurrency market is bracing for greater volatility as the chance of an interest rate cut by the Federal Reserve (Fed) may soon fade.
In addition to showing that the Fed is still being cautious regarding its approach towards lowering interest rates, the FOMC minutes at three o'clock this morning also reinforced the fact that interest rates will remain longer as shown by economic data in the United States (US).
The decision came after Fed officials chose to keep the benchmark overnight lending rate at the current level, followed by a revised statement issued after the FOMC minutes were completed.
As a result, confidence from investors is waning as it is expected that there is a 93.5% probability that the Fed will not cut interest rates during the FOMC meeting in March 2024.
However, it should be noted that the minutes of this morning's meeting show that the Fed's policy has proven to be successful in the overall economy, therefore JP Morgan Asset Management's global market strategist Gabriela Santos believes that interest rate cuts may occur in June 2024.
Historically, interest rate decisions by the Fed have been an important source for investors to value assets, where lower interest rates often lower the value of government securities but increase the appeal of cryptocurrencies.
Not only that, a strong economy is also able to maintain investor demand and a positive economy tends to have stable purchasing power including the desire to buy riskier assets such as digital assets or stocks.
As of this writing, BTC price has plunged by 1.21% to $51,549 in the last 24 hours with a market cap of $1 trillion and has recorded a 0.95% decline over the past week.
