As the FOMC meeting approaches, market participants are closely watching the Fed’s guidance on interest rates. A signal of accelerated rate cuts could ease liquidity conditions and lower the opportunity cost of holding risk assets, potentially providing a boost to the crypto market, which often reacts positively to accommodative monetary policy. Conversely, a more hawkish stance, emphasizing sustained or slower-than-expected rate reductions, could heighten short-term volatility across both traditional and digital asset markets. Overall, the crypto market’s near-term trajectory is likely to be sensitive to the Fed’s tone, with investor sentiment reacting swiftly to any shift in expected monetary policy.
