The FOMC meeting (Federal Open Market Committee) sets U.S. monetary policy, including interest rates, impacting financial markets, including crypto.

How It Affects Crypto:

1. Interest Rates:

Rate Hikes: Lower crypto demand as investors prefer safer assets.

Rate Cuts: Boosts crypto as investors seek higher returns.

2. Economic Outlook:

Weak Economy: Crypto may rise as a hedge.

Strong Economy: Boosts the U.S. dollar, reducing crypto demand.

3. Liquidity:

Easing: Increases money flow, benefiting crypto.

Tightening: Reduces liquidity, hurting crypto.

4. Volatility: Announcements often cause sharp price swings in crypto markets.

Traders monitor FOMC decisions as they directly affect risk appetite and market trends.

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🇺🇸 US FOMC - Polymarket users predict a 95% chance that the Fed will cut rates 25bps on 18th December.
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#FOMCForecast