How Will the Fed Rate Decision Affect Bitcoin? Economists Evaluated!

Today, the Fed will announce its interest rate decision, and the Bitcoin and cryptocurrency market is focused on this data.

The FED is expected to announce its interest rate decision today at 18:00 UTC, ie 21:00 CEST.

While Wall Street banks generally predicted a 25 basis point rate hike in May, CME data shows an 89% probability of a 25 basis point increase.

While the general expectation is 25 basis points, BTC and Ethereum (ETH) can continue their upward momentum in line with this expectation.

However, analysts state that the state of BTC and the crypto market is entirely dependent on Fed Chairman Jerome Powell's statements regarding future rate hikes.

Fed kararı ve Powell’ın açıklamalarını son dakika öğrenmek için Twitter hesabımızı hemen takip edin! -> https://twitter.com/bitcoinsistemi

Speaking to Bloomberg in this context, Former Dallas Fed Chairman Robert Kaplan said the US Federal Reserve should consider a "hawkish pause", signaling a pause in its aggressive rate-raising strategy.

Stating that the rise of the markets needs a more moderate approach from the FED, Kaplan said, "FED now needs to stop its aggressive policy of increasing interest rates." said.

Apart from Kaplan, JP Morgan chief market strategist Tai Hui also said he believes the Fed should raise interest rates another 25 basis points this month and then pause.

The JP Morgan strategy also stated that the FED will cut interest rates this year and will try to bring inflation to its target level by 2024.

Bitcoin, which was positively / negatively affected by the FED's interest rate decisions, has increased by 1.74% in the last 24 hours and continues to be traded at $ 28,518 at the time of writing.

*Not investment advice.