After two months of turmoil between cryptocurrencies and American economic government branches like the SEC, Bitcoin is entering a decisive week for the future of cryptocurrency.
On the first and second days of November, The FOMC will make a decision regarding the November benchmark interest rate rise, which is widely expected to be 0.75%.
The specified raise would follow through with the Fed’s last two increases in September and July.
The rate decision, together with an accompanying statement and economic predictions, is due Wednesday at 2:00 p.m. EST.
The background to market movements will then be completed by Fed Chair Jerome Powell’s address at 2:30 p.m. EST.
In the cryptocurrency world, expectations are that the United States government will begin bringing back interest rates back to a “normal” level. As conditions ease the likelihood grows that Bitcoin reverts the downward trend it went through for the last couple of months, and begin to rack up in price in the following weeks.
In the immediate term, however, analysts anticipate a normal reaction to the next FOMC statement.
According to a statement issued by the large capital firm Merrill Lynch, the Fed has likely considered slowing the pace of interest rate increases beginning in December.
As a result, the bank expects Fed Chair Jerome Powell to suggest that such discussions have taken place, potentially opening the door to a 50-basis-point increase in December.
What To Expect From Powell’s Statement?
Ahead of the most important week of the month for cryptocurrencies, the most awaited moment will be the statement from the Chair of the Federal Reserve of the United States, Jerome Powell.
The question now is whether Powell’s comments about a possible slowdown in rate hikes beginning in December would be enough to drive cryptocurrency and other risk assets higher.
Many cryptocurrency Twitter users are hoping for the same thing, with some expecting that bitcoin (BTC) would “pump” immediately as the Fed issues its announcement on Wednesday.
The outcome of the FOMC meetings is unsure, however, market sentiment is on a high for cryptocurrencies for November.
Just last week, Bitcoin had a surge in price, rising from $19,000 to $21,000, indicating that recent market conditions differ from those seen in prior months.
