2024

Bitcoin

when

Mog Coin

Spot

<p class="is-style-lead">The Federal Open Market Committee will deliver its July interest rate decision on Wednesday, a move that could impact Bitcoin and other crypto prices.</p> 
<h2 class="wp-block-heading" id="cryptocurrencies-wait-for-the-fed-decision">Cryptocurrencies wait for the Fed decision</h2> 
<p>Most cryptocurrencies traded in a tight range ahead of the Federal Open Market Committee decision. Bitcoin (<a href="https://crypto.news/price/bitcoin/">BTC</a>)&nbsp;was trading at $66,300, down from this week’s high of $70,000 while Ethereum was at $3,320.</p> 
<p>The market cap of all cryptocurrencies was down by just 0.78% to $2.38 trillion. Even some of the best-performing altcoins of the day like Mog Coin (MOG), Kaspa (<a href="https://crypto.news/price/kaspa/" target="_blank" rel="noreferrer noopener">KAS</a>), and Ripple (<a href="https://crypto.news/price/xrp/">XRP</a>) were up by less than 6%.&nbsp;</p> 
<p>Economists expect the Federal Reserve will leave interest rates unchanged between 5.50% and 5.25% in this meeting. According to <a href="https://polymarket.com/event/fed-interest-rates-july-2024?tid=1722431855555" target="_blank" rel="">Polymarket</a>, only 4% of participants in the $2.4 million pool expect the bank to slash rates by 25 basis points.</p> 
<p>Nonetheless, this will be an important meeting since the bank could provide guidance on when rate cuts will start.</p> 
<p>With inflation falling for three consecutive months and the <a href="https://crypto.news/us-jobs-data-deals-blow-to-ethena-solana-and-eos-prices/" target="_blank" rel="noreferrer noopener">unemployment rate</a><strong> </strong>rising, the Fed could point to a September cut.&nbsp;The alternative scenario is where the bank maintains a vague data-dependence posture. In this case, it will watch Friday’s non-farm payrolls data for cues on the labor market and the next consumer price index report. It will then provide guidance on a September cut at the annual Jackson Hole Symposium.</p> 
<p> You might also like: <a href="https://crypto.news/inflation-and-the-fed-meeting-why-should-crypto-traders-monitor-us-macro-data/"> Inflation and the Fed meeting: why should crypto traders monitor US macro data? </a> </p> 
<h2 class="wp-block-heading" id="implication-for-bitcoin-and-altcoins">Implication for Bitcoin and altcoins</h2> 
<p>All assets are impacted by the actions of the FOMC. For example, in 2020 and 2021, BTC and other altcoins soared as the bank slashed rates to zero. They then reversed in 2022 as the bank started its benchmark rates.</p> 
<p>One reason Bitcoin and other coins could do well when the Fed starts cutting interest rates is that investors have packed trillions in low-risk assets. Money market funds have accumulated over $6.1 trillion in assets as investors benefit from the average return of 5%.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Money Market Funds totaled more than $6.1 Trillion at the end of the 2nd quarter, an all-time record. And U.S. households were the biggest contributors! <a href="https://t.co/SwAb6ek7Ll" target="_blank" rel="">pic.twitter.com/SwAb6ek7Ll</a></p>— Barchart (@Barchart) <a href="https://twitter.com/Barchart/status/1818154719908348003?ref_src=twsrc%5Etfw" target="_blank" rel="">July 30, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>These assets will be less attractive when interest rates start moving downwards. As a result, there are chances of a rotation to riskier assets like stocks, crypto, and Bitcoin ETFs.&nbsp;</p> 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14288568"> 
  <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/Bitcoin-Price-Fed.png.webp"> 
  <img loading="lazy" decoding="async" width="3574" height="1986" src="https://crypto.news/app/uploads/2024/07/Bitcoin-Price-Fed.png" alt="Bitcoin price"> 
 </picture> 
 <figcaption class="wp-element-caption">
  Bitcoin price | Chart by <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=COINBASE" target="_blank" rel="">TradingView</a>
 </figcaption>
</figure> 
<p>Still, for this meeting, the impact on cryptocurrencies may be limited since the rate pause has been priced in. As shown in previous Fed decisions, there has been no major impact on Bitcoin prices.</p> 
<p> You might also like: <a href="https://crypto.news/spot-bitcoin-etfs-soar-total-net-inflow-17-billion/"> Spot Bitcoin ETFs witness substantial inflows as broader market takes bullish turn </a> </p>

July FOMC decision and its impact on Bitcoin and crypto prices

Table of Contents

crypto.news

Other articles published on Jul 31, 2024

WazirX Co-Founder All Options Are On The Table To Recover Stolen Funds

Bitcoin ETP lists on London Stock Exchange

Ethereum (ETH) and Ripple (XRP) Drop Due to Political Uncertainty, While Clandeno (CLD) Gains Att...

Blackbird Labs Elevates Crypto Dining

Russia Embraces Bitcoin and Crypto for International Trade to Bypass Sanctions

Worldcoin Expands to Austria Amid Growing European Presence

Join our free newsletter for daily crypto updates!