What will happen when the #Fed interest rate is announced on 18/12 in the crypto market❓❓

The Federal Reserve's (Fed) decision to cut interest rates on December 18, 2024, expected to reduce by 25 basis points, could have far-reaching impacts on the cryptocurrency (crypto) market. This is an important context to analyze the potential impact of monetary policy on the digital asset sector.

🥇Interest rate scenarios and market reactions #crypto

✅Scenario 1: Fed cuts by 25 basis points as expected

The market will react positively in the short term, especially if the Fed maintains a dovish stance on subsequent cuts in 2025.

Bitcoin and Ethereum could reverse their downturn, targeting key resistance levels of $110,000 and $4,200, respectively.

✅Scenario 2: Fed cuts more than expected (50 basis points)

This would be a strong catalyst to push crypto prices higher. In this scenario, institutional investors may quickly return to the market, especially after the recent correction.

Altcoins may lead the recovery due to higher risk levels but also greater expected returns.

✅Scenario 3: Fed keeps interest rates unchanged or takes a more "hawkish" stance

The market will continue to correct downward, with Bitcoin potentially dropping to support around $100,000 and Ethereum down to $3,600.

Panic sentiment may emerge, especially in smaller altcoin projects, which are more sensitive to capital withdrawal from the market.