Bitcoin (BTC) fell by 2% to $103,750 after a volatile course throughout the day. This price movement reflects the uncertainty ahead of the US Federal Reserve’s (Fed) interest rate decision, and investors are observed to be cautious.
The decline in Bitcoin had more significant effects on the altcoin market. While major altcoins such as XRP, SOL and ETH also lost value in parallel with Bitcoin, the declines in some altcoins were more severe. The widespread price declines in the markets created a pessimistic atmosphere and reminded investors to be careful against volatility.
The US Federal Reserve's interest rate decision will be announced today at 22:00 GMT. The decision draws attention not only with interest rates but also with economic projections. This statement may play a direction-setting role in the markets. The press conference to be held by Fed Chair Jerome Powell after the decision will be important. Powell's statements will shape market expectations and will be closely monitored by investors.
Economists expect the Fed to cut interest rates by 25 basis points. Following this cut, interest rates are expected to fall to between 4.25% and 4.5%. However, analysts say that expectations for a rate cut in 2024 may be limited. Inflation risks and the economic recovery process are among the most important factors shaping the Fed’s interest rate decisions.
Rising costs and changing policy dynamics require more careful management of interest rate policies. Some experts stress that immigration restrictions and trade tariffs could create inflationary pressures. Such factors have led investors to analyze market decisions in more detail.
The decisions the Fed will make tonight may affect not only the cryptocurrency market but also the entire financial markets. Jerome Powell’s statements may determine the direction of the markets and will be closely monitored by investors.