What's Next for Crypto Prices After Interest Rate Decision? – yPredict Tool Makes AI Price Predictions Easy
Traders are asking where is next for crypto prices in wake of the US Federal Reserve’s latest interest rate decision.
At current levels just under the $29,000 and $1,900 levels respectively, Bitcoin and Ethereum are both not much changed in wake of the Fed raising interest rates by 25 bps to 5.0-5.25% on Wednesday.
The rate hike had been widely anticipated by the market, hence the lack of reaction, though sentiment in the crypto space arguably got a modest boost after the Fed softened its guidance by removing a reference to the need for further tightening.
That has fed into expectations that Wednesday’s interest rate hike was the final from the Fed this tightening cycle.
As US data continues to point to an economic slowdown (notably, the job openings tanked once again) and as bank crisis concerns bubble with more regional US bank’s seemingly on the verge of going under, markets are increasingly betting on interest rate cuts in the second half of 2023.
According to the CME’s Fed Watch Tool, the money market-implied probability that interest rates will be cut by at least 100bps from current levels by December currently stands at around 68%.
That money market implied probability was under 20% prior to Wednesday’s Fed meeting.
Though crypto prices remain locked within recent ranges for now, analysts are unsurprisingly predicting that prices might be about to burst higher.
Bets on easier policy ahead from the Fed (i.e. on lower interest rates and higher liquidity) have historically boosted crypto prices.
Bitcoin and Ether are both currently consolidating within pennant structures that have formed over the last few weeks.
Upside breaks of these near-term trading patterns could see Bitcoin rise quickly back towards recent highs in the
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