Anticipation Grows as Fed’s Decisions Impact Cryptocurrency Markets

Until March, there are no Federal Reserve meetings, and cryptocurrency players will closely monitor the incoming macroeconomic data. The Federal Reserve’s significant slowdown in interest rate cuts, with a potential pause during several meetings, has negatively affected the risk markets. Depending on the data, the trajectory may shift. What lies ahead for cryptocurrencies?

US PCE Data and Its Effect on Cryptocurrencies

Powell mentioned that a decision on interest rate cuts could come sooner in March. While markets anticipate the first cut of the year in June, this will depend on upcoming data. President Trump, striving to lower energy prices, aims to reduce inflation to facilitate lower interest rates. We have often witnessed Trump’s comments about the high interest rates.

In the data released in December for November, the annual increase was at 2.4%, slightly above the 2.3% from October. Today’s expectation is set at 2.6%, indicating a projected monthly increase of 0.3%, compared to a previous increase of 0.1%.

The PCE data was announced as 2.6%, aligning with expectations. The absence of an unusual increase is relatively positive. With moderate FOMC statements and recent data, February may begin quietly. Shortly, we will also share key details from Fed member Bowman’s upcoming statements.