While global markets are locked in the FED meeting and the interest rate decision to be announced, decreases are seen in crypto money transactions. Today, together with you, we will examine topics such as what is happening in the markets before the FED’s interest rate decision, how the markets reacted after the previous rate decision announcements, and how the markets can react after today’s statement.
March Interest Decision
In the interest rate decision announced by the US Federal Reserve in March of this year, it increased interest rates for the first time since November 2018 and made a 25 basis point increase to bring the inflation rate down. After this interest rate increase of 25 basis points, there was a momentary decrease in cryptocurrencies, but then a significant upward momentum was seen. Leading cryptocurrencies such as Bitcoin and Ethereum experienced an increase and altcoins followed these leading cryptocurrencies. The total value of the cryptocurrency market reached $1.9 trillion.
May Interest Decision
The FED held its next meeting in May, and from this meeting, a 50 basis point rate hike decision was made. Bitcoin, which followed a horizontal course before the interest rate decision was announced, climbed after the interest rate decision and recorded an increase of 5.20% on a daily basis.
June Interest Decision
When we came to June, after the US Federal Reserve announced the inflation data as 8.6, when it saw that the country had reached the highest inflation value after 40 years, it decided to raise interest rates again and increased it by 75 basis points. After this interest rate decision, the value of the leading cryptocurrency Bitcoin decreased.
We took a look at the three interest rate decisions and their results before the interest rate decision in July, but how many basis points is expected to increase by the FED today, and what kind of movements do experts expect in the markets after this increase?
In What Direction Are The Markets Moving?
As I said at the beginning of the article, while everyone was focused on the interest rate decision to be announced by the FED, decreases were recorded in crypto money transactions and the downward movement at the beginning of the week continues in the markets where pricing was realized under the influence of the FED’s interest rate decision. While Bitcoin continues its price volatility around $ 21 thousand 316, the total crypto money market value has decreased to $ 1 trillion. When we look at the beginning of the week, Bitcoin started the week above $ 22 thousand, but we see that the sales-weighted price activity continues before the interest rate decision.
How Many Points Will FED Increase?
The general opinion about the interest rate decision, which is expected to be announced by the FED today, is that there will be an increase of 75 basis points, but some commentators and economists believe that this increase can be 100 basis points.
What Happens After the Interest Rate Decision?
According to experts, a new wave of decline may occur in cryptocurrencies after the FED’s interest rate decision, but if the interest rate increase is currently priced by the market, the decrease may be limited with the interest rate decision and will not affect the market much. FED’s interest rate decision will be announced at 21:00 CEST today.
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