Today, June 18th, the US Federal Reserve announces whether to cut or maintain interest rates. The decision was known at 14:00 (Washington, DC time) after the Open Market Operations Committee (FOMC) meeting and could directly affect the prices of Bitcoin (BTC) and other financial assets.
The market already assumes that Interest rates continue to last approximately 4.25-4.50% per yearthe focus will be on a speech provided by Federal Reserve President Jerome Powell after the data is published. His words could provide clues about future cuts or continuity of current monetary policy.
If the market interprets forecasts as favorable, it can push the price of Bitcoin and cryptocurrency.
Otherwise, if it maintains a cautious attitude, it can create bearish pressure on digital assets. in any case, A day is expected to be characterized by its high volatility in the market.
As crypto explains, each time low interest rates reduce the cost of debt, there is more liquidity in the financial system. In these contexts, it is when investors place their holdings on assets that are considered “risk” such as BTC or cryptocurrency to earn greater returns.
On the other hand, if interest rates are high, investors will be refuge in financial instruments such as fiscal debt.