Could an unexpected Fed meeting turn the markets upside down? The Fed is expected to hold a special and unscheduled meeting today, February 14. While the official agenda of the panel includes only one topic, the commission is likely to discuss the impact of cryptocurrencies or Bitcoin (BTC) in today’s market. As Kriptokoin.com, we are giving the details…
How can the Fed’s mysterious meeting affect Bitcoin (BTC) today?
Most financial analysts believe that the secret meeting was held to raise the key rate after inflation figures were made public. Historically, a rate increase has been seen as a bad indicator for riskier assets like cryptocurrencies. The rate hike will almost certainly result in a US debt collapse, leading to bond market exits, analysts say. As a result, some of the cash could enter the cryptocurrency market and give Bitcoin more purchasing power that it so much needs right now. However, according to analyst Arman Shirinyan, two more important topics need to be considered…
CBDC announcement
A Central Bank Digital that will likely benefit the crypto market The launch of the Currency (CBDC) is another unexpected event that could shake up both the crypto and traditional markets. As the government formally embraces this idea, the adoption of Blockchain technology, which is the core of any CBDC, could spur more individual investors into the industry. Besides acceptance, possible restrictions on the use of different categories of communities could have a devastating effect on a decentralized market open to anyone with an internet connection.
Fed backs down
The Fed’s decision to maintain the current key rate is the least likely scenario, according to analysts. If no action is taken, the market is likely to continue to rise slowly until the rate hike occurs, but if there is a delay, the rate hike will have a more devastating effect on the market, possibly leading to greater losses. As a result, a reverse decision from the unexpected Fed meeting could have a devastating effect on the markets.
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