How Does a 25 Bp Rate Increase Affect Bitcoin Price? Are Banks Expecting a Surprise from the FED?

In the Bitcoin and crypto money market, the eyes were turned to the interest statement from the FED this evening.

While experts state that it would be better for the future of the economy for the FED to keep the interest rates constant after the banking crisis in the USA, we see that the expectations are united around a 25 basis point interest increase, but the opinions of the world’s largest banks on this issue differ.

While some banks expect an increase of 25 basis points from the FED, some banks express their opinion that interest rates will not be increased or cuts will be made.

Some banks’ FED Interest Rate Forecasts are as follows:

“JP MORGAN raises 25 basis points

BANK OF AMERICA 25 basis points increase

MORGAN STANLEY 25 basis points raise
CITI 25 basis point raise

BARCLAYS 25 basis points raise

DEUTSCHE BANK 25 basis points increase

GOLDMAN SACHS 0 basis point increase

WELLS FARGO 0 basis points increase

CREDIT SUISSE 0 basis points increase

NOMURA 25 basis points cut”

What is the Effect of the FED’s Interest Rate Decision on Bitcoin?

Evaluating the impact of the FED’s interest rate decision on BTC and the cryptocurrency market, analysts said, “If the FED decides not to increase rates, then there may be a pump. However, if the FED increases by 25 basis points within the expectations, there may not be a downward or upward movement in the market. With an increase of 50 basis points, it seems likely that the crypto market will experience a dump.” commented.

How Will BTC Be Affected in 25 BPS Scenarios?

At this point, in our opinion, if there is a 25 basis point interest rate increase, the statements in the FED’s interest rate decision will be decisive in the direction of the market.

If, after the 25 basis point interest rate hike, the phrase “the board thinks that continuing interest rate hikes will be appropriate”, which the FED has used in every text since March 2022, is removed from the text, we can see a serious rise in Bitcoin and gold. The reuse of this expression in the text will reflect on the markets as selling pressure.