Bitcoin strengthens during Asian session ahead of Federal Reserve decision; market divided on rate hike expectations
Source: Global Market Broadcast
Prior to the Federal Reserve's interest rate decision, which will be announced at 2:00 p.m. Eastern Time, bitcoin broke through $64,000 during Asian trading hours, rising by about 1% on the day. Ethereum increased by 1.7% to $1,909, and XRP led the major cryptocurrencies with a 2.6% gain.
The market generally expects the Federal Reserve to keep interest rates unchanged. According to CME data, about 70% of traders anticipate the Fed will hold steady for the sixth consecutive meeting, maintaining the benchmark rate in the 3.50% to 3.75% range. However, about 30% of market participants have priced in a 25 basis point rate hike, a possibility that has received significant institutional support. Citadel Securities told clients they expect a surprise rate hike this week to bolster Chairman Walsh’s credibility in fighting inflation; UBS also indicated it would not be surprised by such a move.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Cardano Foundation unveils zero-knowledge series as ADA drops 2.8% to $0.1725
How much CPO demand will Nvidia Rubin Ultra generate? Bernstein: Optical value per Pod will increase fivefold
Bernstein believes that the co-packaged optics (CPO) and fiber demand driven by Nvidia's Rubin Ultra architecture will surge significantly, with the optical content per Pod rising from $1 million to $5.4 million. This will propel the size of Nvidia's optical ecosystem market to $46.8 billion by 2028 (a 91% annual increase). Although the industry faces supply bottlenecks with InP substrates, the outlook remains positive. The institution reiterates its “outperform” rating for Lumentum, Coherent, and Ciena.
Crypto prices
More
