FOMC Decision Looms as Pivotal Moment for Crypto Markets Amid Divergent Rate Expectations
The Federal Open Market Committee's upcoming decision has become a critical inflection point for cryptocurrency markets, with traders bracing for potential volatility. While interest-rate futures still price in future cuts, bond markets tell a different story—yields have risen sharply, financial conditions have tightened, and Tuesday's stronger-than-expected JOLTS report suggests persistent economic strength.
This tension between market expectations and economic reality places extraordinary weight on Chair Powell's messaging. The crypto market's year-end trajectory may hinge on whether the Fed validates the aggressive easing path priced into risk assets or pushes back against premature pivot hopes. Inflation remains stubbornly above target, complicating any smooth transition to lower rates.
