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Bitcoin (BTC) dipped to $59,500 on Binance as traders brace for tomorrow's Federal Open Market Committee (FOMC) meeting. The crypto market is holding its breath, with most expecting the Fed to hold interest rates steady between 525-550 basis points. đŒ
đ Rate Cut Hopes Fade According to the CME FedWatch Tool, only 4.4% of economists foresee a rate cut, while a whopping 95.6% expect no changes. Just four months ago, there was significant anticipation for multiple cuts, but now, the market only expects one rate cut this year, down from earlier predictions of six! đ
đ„ Stagflation Concerns Adding to the tension, the US economy faces rising stagflation risks. Economic growth has slowed, with Q1 2024 GDP growth dropping to 1.6%, well below the expected 2.2%, while inflation climbed to 3.7%. As Fed Chair Jerome Powell signals a prolonged period of high interest rates, Bitcoin's trajectory has mirrored these concerns.
đ Short-Lived Rally Earlier this week, Bitcoin briefly rallied above $64,000 following the launch of spot Bitcoin and Ethereum ETFs in Hong Kong. However, the rally was short-lived as caution returned to the market ahead of the Fedâs key decision.
As the crypto world waits with bated breath, will Bitcoin hold its ground or tumble further? Keep your eyes on the charts and stay informed! đ
