When is the Fed Rate Decision? How Could Crypto Be Affected?

The Federal Reserve will hold its FOMC rate meeting today at 2:00 PM ET. Investors are awaiting the Fed’s announcement of a 25-basis-point rate cut. Following the meeting, Fed Chair Jerome Powell will host a press conference at 2:30 PM ET.

Crypto and stock markets are focused on the signals that will come from this announcement. The potential end of quantitative tightening (QT) is particularly critical. Bitcoin, having filled its CME gap, could potentially rebound toward $120,000. Today is an important day as the Fed rate decision will be revealed.

Jerome Powell’s Speech: More Important Than the Rate Decision

After September’s 25-basis-point rate cut, FOMC officials indicated openness to further reductions. Powell stated that rate decisions will be taken on a meeting-by-meeting basis, depending on labor market conditions.

He also emphasized that the Fed’s QT program should end soon. Amid the ongoing U.S. government shutdown and limited economic data, investors are closely monitoring these remarks. September’s CPI data showed lower-than-expected declines in headline and core inflation, but annual CPI rose from 2.9% to 3%.

CME FedWatch data suggests that investors expect a 25-basis-point rate cut in December, signaling potential volatility for crypto markets.

Crypto Market and Bitcoin: What to Expect from the FOMC

According to popular analyst Michael van de Poppe, while a 25-basis-point Fed rate cut is likely, crypto volatility may surge today. Investors should avoid excessive leverage as prices could move sharply in either direction.

Bitcoin still presents valuable opportunities compared to other assets. Buying near the $112,000 dip is considered a strong entry point. Post-FOMC, BTC could gain momentum toward $123,000.

Key points for crypto investors today:

• Monitor BTC and altcoin price movements starting at 2:00 PM ET

• Analyze Jerome Powell’s guidance during the press conference

• Take precautions against volatility when using leverage

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