Crypto Market On Alert As This Week’s Fed Decision Isn’t Just About Rates
NeutralCryptocurrency
- Crypto markets are closely monitoring the upcoming Federal Reserve meeting, where the focus is less on potential rate cuts and more on whether Jerome Powell will signal the onset of quantitative easing (QE) through a shift to a reserve management regime. Futures markets indicate a high probability of a 0.25 percentage point cut, but the real uncertainty lies in the Fed's plans for dollar liquidity and T-bill purchases.
- The implications of this meeting are significant for macro-sensitive traders and institutions, as any indication of QE could impact liquidity in the cryptocurrency market and influence investor sentiment. Mark Cabana from Bank of America has become a key figure in this discussion, suggesting a potential $45 billion monthly program for Treasuries.
- This situation reflects broader trends in the cryptocurrency market, where recent sell-offs have been characterized as unusual, with a disconnect between asset prices and macroeconomic indicators. Additionally, speculation around Kevin Hassett potentially replacing Powell as Fed Chair adds another layer of complexity, as his appointment could signal a more crypto-friendly approach to monetary policy.
— via World Pulse Now AI Editorial System
