Bitcoin Traders Focus on Fed’s Interest Rate Dot Plot Ahead of Meeting
The Federal Reserve's Open Market Committee will announce its interest rate decision on Wednesday at 18:00 UTC, followed by a press conference by Chairman Jerome Powell.
Key points include:
- The Fed is likely to maintain rates at 4.25%-4.50%, despite calls for lower borrowing costs.
- Traders are focused on the interest rate dot plot, which shows officials' projections for future rates.
- A hawkish dot plot could pressure cryptocurrencies, particularly bitcoin, which has stalled above $100,000.
- Expectations for rate cuts in 2025 have decreased from 100 basis points to 50, with geopolitical tensions impacting forecasts.
- Hawkish policies may increase U.S. debt servicing costs, potentially enhancing the long-term appeal of assets like gold and bitcoin.