🚨Sudden Fed ‘Financial Crisis’ Fear Sparks Huge Bitcoin And Crypto Price Crash Prediction 📉
Most of the cryptos have recorded massive losses, including XRP, ADA, PEPE, LINK, SUI, and many more. The crypto markets are expected to undergo a roller coaster ride this week with FOMC, GDP, PCE, unemployment, and more on the horizon. These events are expected to induce some confidence among traders and also test Bitcoin’s resilience or rally. Therefore, it would be pivotal whether these events will catalyse a surge or retreat.
The FOMC meeting could influence market volatility by impacting inflation outlooks and interest rates, potentially affecting crypto prices.
♦️Delay over crypto-related executive orders
The crypto community was optimistic that President Trump’s return to the White House would bring with it a suite of economic policies that would positively affect the cryptocurrency market.
Trump had promised to make the United States the "crypto capital of the world” and was expected to make a flurry of executive orders on his first day in office to address this, including potentially establishing a Strategic Bitcoin Reserve.
📈Macroeconomic Indicators
Beyond crypto policies, today’s crypto market slump is also a reaction to broader macroeconomic indicators. The US services sector growth, recently reported to be faster than expected, has increased Treasury yields as investors flocked to safer assets.
Coupled with this, the Federal Reserve’s decision to signal only two interest rate cuts in 2025, instead of the three as previously anticipated, has introduced a more hawkish outlook.
This shift in monetary policy suggests a continued fight against inflation, or likely higher borrowing costs and a less favorable environment for riskier investments like cryptocurrencies.