#FOMCWatch: Fed's decision tonight, which way is the crypto market heading?
The October FOMC meeting has started today, October 27. The decision will be announced tomorrow, October 28, at 2:00 PM US time. In Bangladesh time, that will be around midnight (12:00 AM), and the Chair's press conference will begin at 12:30 AM.
What has happened so far?
In September, the Fed raised the rate by 25 basis points, bringing the range to 3.75–4.00%. This was the first rate hike since July 2023. Now the question is, will the Fed raise it for the second consecutive time?
What is the market thinking?
According to data from early October, the futures market shows about an 80% probability of a "Hold" and around a 20% probability of a hike. However, the probability of another hike in December is considered higher. The US midterm elections on November 3 are also drawing very close.
Where is the real focus?
More than the decision itself, the Fed Chair's language could be more crucial. If he hints at a December hike, the Dollar and yields could strengthen. This might put short-term pressure on risk assets like BTC and ETH. On the other hand, a dovish tone could spark a relief rally in the market.
Tips for traders:
Volatility increases significantly before and after the announcement, so keep leverage low.
Do not open positions without a stop-loss.
The initial move is often a fake-out, so do not rush; wait for confirmation after the press conference.
What do you think will happen today: a hold or a surprise hike? Let us know in the comments. 👇
⚠️ This is not financial advice. Do your own research (DYOR) before investing.
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