FOMC News Today: BTC Surpasses $97,500 While Altcoins Battle to Keep Pace
Markets are collectively holding their breath in anticipation of the Federal Reserve’s FOMC news today. Digital currency is no different. Bitcoin and Ethereum have begun to show slight upward movements, mirroring the increased tension across risk assets.
With rate decreases still not on the agenda, crypto traders are collectively wondering: What on earth is this backstabbing fellow Fed Chair Jerome Powell thinking?!? Lowering the rates is essential; people’s well-being hangs in the balance (and so do my investments).
The widespread opinion among analysts is that not cutting rates at this juncture will be too slow and too late ONCE AGAIN.
This is his opportunity to correct his previous errors and lower rates proactively. He had no qualms about cutting to assist Biden. It appears that the failure to reduce rates is purely political.
Here’s our forecast for the upcoming FOMC statement today:
FOMC Update Today: This Will Follow After Powell Declines to Lower Rates
To grasp why Powell ought to decrease rates, let’s take a broader view of the US economy:
- Energy costs are down (particularly oil)
- Inflation is virtually nonexistent (2.39%)
- J Powell refuses to lower rates regardless, seemingly condemning the American economy to perpetual stagflation, presumably to play political games with Trump.
People ought to be demonstrating in the streets.
(X)
Lowering rates takes around 12 months to noticeably affect the economy. Powell must begin reducing rates now, especially since China just cut rates by 10 points and decreased the bank reserve ratio by 50 points.
In the meantime, risk assets are on the lookout for a shift in the Fed’s stance. One hint of easing, and crypto could surge. Up to now, FedWatch indicates no changes yet, but everyone is aware that it’s not just about today’s action—it’s the indication that counts.
BTC Moving Upward, Testing Resistance
BTC has been fluctuating between $93K and $97K all week, currently sitting close to $96,490 on global charts while trading somewhat lower in India at $94,875.
The next significant test lies at $97,900. If it breaks past that, $100K could soon be within reach. Base level appears stable around $93,700.
Ethereum reached $1,830 on Wednesday, not quite a breakout—but not retracting either. It’s maintaining the $1,800 threshold, a level closely monitored by 99Bitcoins traders.
Altcoins such as Ripple, Chainlink, and Avalanche are also showing movement, albeit minor. It’s not a frenzy, but there’s a palpable sense that this is the calm before the storm.
Forecast and What Lies Ahead
Even with increasing anxieties surrounding the US economy, the trading market cap gained 1.5%, now reaching $2.98 trillion. However, altcoins remain stagnant—sideways trading that could culminate in a downturn post-FOMC.
The US government’s stance seems contradictory:
- Economic slowdown is on the horizon; tariff effects are likely beginning to impact businesses.
- The slowdown will trigger layoffs, prompting individuals to withdraw funds from stocks and crypto.
- A rate cut would provide essential liquidity, but it remains unlikely.
Of course, this represents the worst-case scenario, but for now, the crypto market is poised on the edge of a precipice.
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Key Insights
- Markets are collectively holding their breath in anticipation of the Federal Reserve’s FOMC update today. Digital currency is no exception.
- Lowering rates takes around 12 months to substantially impact the economy. Powell must commence rate cuts now.
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