Global interest rates rule Bitcoin

Just like stock markets, cryptocurrencies are also looking at only one thing this week. On Wednesday, the decision of the FOMC (Federal Operan Market Committee) will be announced, and investors will finally know whether the Federal Reserve really intends to pause rate hikes, or whether we will go even higher.

Everything, everywhere therefore depends once again on the words of Jay Powell and his colleagues.

Powell en Gensler

Furthermore, and this only for crypto, Gary Gensler, the chairman of the US stock market watchdog SEC, responded this weekend for the first time to Judge Annalisa Torres’ ruling in the SEC against XRP matter. Gensler clearly intends to investigate whether the SEC could appeal the ruling, which is putting downward pressure on the price of crypto.

Bitcoin continues to trade below the $30,000 mark. The price of Bitcoin did not rise about $30,000 over the weekend. This recent price decline could be because of the US SEC chair expressing disappointment with the defeat over XRP’s case and increasing selling pressure,”

Said Edul Patel, CEO of crypto platform Mudrex.

“There could be little volatility this week as FOMC’s decision on interest-rate policy is due on Wednesday.”

Inflation

Even though the global inflation level is coming down thanks to the many interest rate hikes, it is still not at the level the Federal Reserve would like it to be (which is 2%). That is why many analysts, like those of the Dutch bank ING, think that the Fed will raise interest rates again (and that the ECB will follow suit shortly after).

The text accompanying the decision is also very important. If it shows that the Fed wants to make more rate hikes after this one, markets could fall sharply. If the Fed surprises and doesn’t raise interest rates further, markets will move sharply higher.

At the time of writing, Bitcoin is trading for $29,100.