As the crypto market nears a crucial Federal Reserve meeting scheduled for June 18, the consensus suggests that there will be no interest rate cuts, with a striking 99.9% chance of rates remaining steady. This decision is largely attributed to robust job data and ongoing inflation that persists above the Fed's target, leaving central bank officials cautious about altering monetary policy. Currently, Bitcoin is trading above $108,000, showing a modest increase of over 2% in the past 24 hours, while the overall crypto market maintains a valuation of approximately $3.38 trillion.
Recent data has shifted market sentiment dramatically. Traders had anticipated potential rate cuts earlier this summer, but favorable job reports have altered expectations. The CME FedWatch Tool indicates only a 0.1% probability of a 25 basis point cut, falling significantly from sentiment earlier in May, when chances were considerably higher. With the European Central Bank recently lowering its rates, political pressures are mounting, notably from former President Trump, who is advocating for a more aggressive cut to spur economic growth. Despite this external pressure, the Fed is likely to continue watching inflation and tariffs closely before deciding on its next steps.
Crypto markets are currently reflecting mixed emotions. While Bitcoin and Gold maintain strength, some investors are shifting from the U.S. dollar to more volatile assets like cryptocurrency. Sergey Gorev, a financial analyst at Youhodler, cites this trend as a potential support for Bitcoin’s current pricing. Yet, caution is warranted; Gorev warns of a potential 'Head and Shoulders' pattern emerging in Bitcoin's charts, which could signal a downturn that might push prices down to around $92,000. With inflation data also on the horizon, the crypto market is positioned delicately between optimism and caution as it prepares for the Federal Reserve's decisions.
Recent data has shifted market sentiment dramatically. Traders had anticipated potential rate cuts earlier this summer, but favorable job reports have altered expectations. The CME FedWatch Tool indicates only a 0.1% probability of a 25 basis point cut, falling significantly from sentiment earlier in May, when chances were considerably higher. With the European Central Bank recently lowering its rates, political pressures are mounting, notably from former President Trump, who is advocating for a more aggressive cut to spur economic growth. Despite this external pressure, the Fed is likely to continue watching inflation and tariffs closely before deciding on its next steps.
Crypto markets are currently reflecting mixed emotions. While Bitcoin and Gold maintain strength, some investors are shifting from the U.S. dollar to more volatile assets like cryptocurrency. Sergey Gorev, a financial analyst at Youhodler, cites this trend as a potential support for Bitcoin’s current pricing. Yet, caution is warranted; Gorev warns of a potential 'Head and Shoulders' pattern emerging in Bitcoin's charts, which could signal a downturn that might push prices down to around $92,000. With inflation data also on the horizon, the crypto market is positioned delicately between optimism and caution as it prepares for the Federal Reserve's decisions.
