Crypto Market Anticipates US Fed Rate Reduction
(MENAFN) The digital currency sector is closely watching for a potential interest rate decrease by the US Federal Reserve on Wednesday, during the bank’s Federal Open Market Committee (FOMC) session.
With American employment indicators weakening and inflation slipping under 3%, the Fed is anticipated to announce its first rate reduction of the year.
Analysts broadly expect a 25-basis-point cut, likely followed by two additional decreases of the same magnitude at the remaining gatherings this year.
Mustafa Batuhan Tufaner, an associate professor of economics at Istanbul Beykent University, told a news agency that the Fed is encountering “a kind of dilemma” regarding policy easing.
He explained that the central bank has remained prudent due to tariff-related unpredictability but now seems more inclined to act as jobless claims increase.
Added pressure from US President Donald Trump on Fed Chair Jerome Powell to lower rates is also a contributing factor.
Although such a move would have a direct impact on most US markets, global crypto markets are likewise paying close attention to the Fed’s decision.
“Cryptocurrencies will be positively influenced by a rate cut, but geopolitical developments will also influence this process,” Tufaner noted.
Currently, Bitcoin is trading near $115,000 ahead of the meeting, while Ethereum hovers around $4,500.
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