As the leading cryptocurrency Bitcoin began to consolidate at levels between $29,000 and $31,500, the cryptocurrency market has been relatively flat in recent weeks. While this consolidation continues in BTC, market attention has turned to the Federal Reserve’s interest rate decision. The Fed’s interest rate decision will be announced tomorrow at 21:00 Turkey time.
Bitcoin’s Consolidation Continues
The cryptocurrency market, which started a strong rally in mid-July, has experienced a decline in recent weeks. As Bitcoin began to consolidate between $29,000 and $31,500, the cryptocurrency market has been relatively flat during this period. Although BTC surpassed the $30,000 level several times last week, it could not sustain the upward momentum and fell back to the $29,000 level. This downward trend in BTC has also led to significant value losses in many cryptocurrencies in recent days.
Meanwhile, as the sideways movement continues in BTC, attention in the markets has turned to the Federal Reserve’s interest rate decision, which will be announced tomorrow at 21:00 Turkey time. There is almost a certain expectation of a 25 basis points interest rate hike for the Fed’s July meeting.
Although there is an expectation that the continuation of the Fed’s interest rate hikes could lead to dramatic declines in the cryptocurrency market, crypto analyst Michael Van de Poppe claimed in a tweet that the market has already priced in the interest rate hike.
What Will the Fed’s Interest Rate Decision Be?
While the Fed kept its policy rate unchanged by not making any interest rate hikes in June, Federal Reserve Chairman Jerome Powell signaled that interest rate hikes could be resumed in the coming months. Indeed, many Fed officials have made statements in recent weeks that have strengthened expectations of an interest rate hike. Therefore, the expectation for the Fed’s interest rate decision is that there will be a 25 basis points interest rate hike. However, it remains to be seen whether there will be additional interest rate increases in the coming months after a possible interest rate hike tomorrow.
The latest survey conducted by Reuters with 106 economists shows that most economists expect this increase to be the last increase for a while. However, Fed officials have indicated in their statements that there could be two 25 basis points interest rate hikes in 2023.
