Bonds, Dollar, Inflation Decrees US Fed Bets On “Pause”, Peter Brandt Predicts Bitcoin Rally – Crypto News – Crypto News
Connect with us
Crypto Bounce Back Crypto Bounce Back

Technology

Bonds, Dollar, Inflation Decrees US Fed Bets On “Pause”, Peter Brandt Predicts Bitcoin Rally – Crypto News

Published

3 years ago

on

The US Federal Reserve bets on keeping interest rates unchanged at 5%-5.25% after the two-day Federal Open Market Committee (FOMC) meeting on Wednesday. The FOMC Dot Plot indicated Fed officials were mostly dovish on the interest rate decision and voted to “skip” in June for additional hikes later this year.

Wall Street giants remain bullish on crypto and stocks, as they correctly estimated historic drops in inflation data for May and June. JP Morgan, Goldman Sachs, Morgan Stanley, Bloomberg, Barclays, BMO, CIBC, Nomura, RBC, and Wells Fargo analysts estimated “no rate hike” in June. The CME FedWatch Tool also shows a 95% probability of the Fed keeping its policy rate unchanged.

The bond market expected Fed to “skip” rate hike in June, with treasury yields dropping, annual CPI and core CPI inflation cooled in May, and the US dollar continues to drop with the US dollar index (DXY) at 103. The global markets are also recovering from an economic slowdown with recession risks fading.

“The Fed will likely keep rates on hold at the June FOMC meeting for the first time since it began this hiking cycle in March 2022. Chairman Jerome Powell and Co. will likely characterize the decision as a “hawkish skip,” maintaining a bias toward hiking at the July meeting.

Fed Chair Jerome Powell said Fed leaders prefer to wait to evaluate the impact of past increases on the economy, considering bank failures, debt ceilings, and issuing of Treasury bills by the Treasury Dept. The Fed will keep open its options to hike again in July or September.

Dow Jones, S&P 500, and Nasdaq futures rise as big money managers and investors slashed bearish bets and buying stocks in anticipation of cooling inflation and the Fed “skip” rate hike.

Also Read: US House To Vote On Crypto Bill For Clarity On SEC or CFTC Jurisdiction In Weeks

Crypto Market Recovery After FOMC: Bitcoin, Ethereum Price to Rally

Wallet Street analysts expect Bitcoin and Ethereum prices to bounce on positive macro factors. Veteran trader Peter Brandt prediction The BTC price action shows a “hinge” behavior as the price moved in equilibrium on the daily chart.

Moreover, A bullish signal with a “tri-star bottompattern, with upside momentum. However, the monthly chart showing a bearish setup, causing a sideways movement over the last few days. Fed “skip” breaks this dull price action and price to rebound.

btc price continues to trade sideways in the last 24 hours, with the price currently trading above $25,960. The 24-hour low and high are $25,728 and $26,376, respectively. Meanwhile, eth price currently trading above $1750. The 24-hour low and high are $1727 and $1761, respectively.

Also Read: Binance Supports Terra Classic (LUNC) Parity Upgrade; L1TF Awaits Google Update

Mooky

AD

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending