*Impact of FOMC Report on Crypto if Rates Remain the Same*
- *No Immediate Impact*: If interest rates remain the same, there might not be an immediate impact on cryptocurrency prices ¹. However, the Federal Reserve's forward guidance and comments from Fed Chairman Jerome Powell could provide important clues about the policy-easing strategy for the rest of the year ².
- *Long-term Effects*: Higher interest rates have been affecting cryptocurrency prices, and a steady rate could mean a steady crypto market ¹. However, a more hawkish message from the Fed could curb investors' appetite for risk assets such as cryptocurrencies, weighing on prices and possibly elongating the correction ³.
- *Market Expectations*: Markets expect the Federal Reserve to keep interest rates unchanged, but there is a strong chance of the Fed lowering policy rates multiple times starting in September ². This could impact cryptocurrency prices in the long term.
- *Investor Sentiment*: Investor sentiment plays a crucial role in cryptocurrency prices. If investors are risk-averse due to the Fed's decisions, they might be less likely to invest in cryptocurrencies, leading to lower prices ³. On the other hand, if investors are optimistic about the Fed's decisions, they might be more likely to invest in cryptocurrencies, leading to higher prices.
- *Other Factors*: Other factors such as inflation, economic growth, and geopolitical events also impact cryptocurrency prices. These factors could influence cryptocurrency prices regardless of the Fed's decisions on interest rates.
