What To Expect For Crypto Market From FOMC Meeting Minutes?

Bitcoin fomc minutes

FOMC Meeting Minutes: When the minutes of meeting from the Federal Open Market Committee (FOMC) are released, the markets are expected to react strongly going by the sell off seen in the last few days. The FOMC minutes are coming at a time when fears rise about a spell of market wide sell off in coming days. Meanwhile, whether the U.S. Fed will continue to raise interest rates for the better part of 2023 will be key to the market sentiment. Hence, any further indicators for the need to continue raising rates will likely lead to a drop in stock values, at least as an immediate reaction.

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However, traders will be aware that the latest FOMC data did not take into account the recently released jobs data, that showed huge robustness with very low unemployment rate. It should also be remembered that the crypto market continued to take positive momentum to the US jobs data, despite growing concerns that hopes of the Fed’s pivot to rate cuts in 2023 are nowhere near reality. The crypto ecosystem could further benefit from volatility in stocks, as it would only mean traders preferring high yield assets like Bitcoin (BTC) in such scenarios.

Market Selloff To Benefit Crypto?

Although the beginning of 2023 brought good yields for traditional markets, the crypto ecosystem recovered way above that level in relative terms. While the S&P 500 Index gained by around 4% since January 1, 2023, the Bitcoin price grew by over 50%. Therefore, volatility in stocks might initially sound bearish for cryptocurrencies, but could eventually benefit them. This is because traders would want to hedge their assets on high return investments to protect from rising interest rate and the surrounding uncertainty.

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The U.S. Dollar Index (DXY) is on an upward curve in the lead up the FOMC minutes release, whereas BTC is going through a correction. As of writing, BTC price stands at $23,739, down 2.55% in the last 24 hours, according to CoinGape price tracker.

Popular trader Michael van de Poppe feels there could be a buy opportunity amid market correction. It remains to be seen if a dip following FOMC minutes release will lead to a minor rally over the week.

The post What To Expect For Crypto Market From FOMC Meeting Minutes? appeared first on CoinGape.

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