The Federal Open Market Committee (FOMC) is set to meet next week, between July 29 to 30, to decide on U.S. interest rates. The rate has been steady at 4.25-4.50% for months. Most expect it to stay the same but await federal guidance for the future.
Traders in crypto markets are waiting for new clues. Bitcoin and Ethereum have moved in narrow bands, and investors hope comments by Chair Jerome Powell will help them guess whether risk asset demand may pick up or retreat.
In past years, changes from the FOMC have moved crypto sharply. One study found that an unexpected shift in policy can move Bitcoin’s price by about 0.25% on the day and further in the coming days. The effect can be stronger during bull markets.
Dan Raju, CEO of brokerage platform Tradier, noted that high interest rates typically deter people from buying speculative assets like crypto. By contrast, if rates fall, crypto demand may rise.
Federal Reserve Governor Christopher Waller signalled support for a 25‑basis‑point rate cut at the upcoming meeting. He said signs of weaker labor data and economic risks may justify easing.
Yet, some experts warn that even if the Fed holds rates unchanged, what matters most is the tone. If the Fed sounds too careful or strict, investors may lose confidence and sell their crypto.
Financial markets have become easier, like they were in early 2022. That may make a rate cut hard to justify unless inflation shows marked easing.
At present, crypto sentiment looks mixed. Optimists expect a dovish signal to reignite buying in Bitcoin, Ethereum, and other coins. Pessimists fear that even gentle caution may lead to profit‑taking or a short‑term dip.
The FOMC meeting is an important moment for crypto. If the Fed announcement is friendly or cuts rates, prices may go up. But if the message is strict or careful, prices could fall. Traders will be watching closely to see what the Fed plans next.
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