In general, it is not expected that feat cuts occur today.
The official’s words after interest rates will impact markets.
Today, June 18, the United States Federal Reserve (FED) will announce whether it cuts or maintains the interest rate. The decision will be known at 14:00 (Washington DC time) after the meeting of the Open Market Operations Committee (FOMC) and could have a direct impact on the price of Bitcoin (BTC) and other financial assets.
Although the market already assumes that The interest rate will continue around 4.25- 4.50% per yearthe focus is on the speech that Jerome Powell, president of the FED, will provide after the publication of the data. His words could give clues about future cuts or the continuity of current monetary policy.
If the market interprets Fed projections as favorable, you could push the price of Bitcoin and cryptocurrencies.
Otherwise, if it maintains a cautious posture, that could generate a bearish pressure for digital assets. In any case, A day marked by high volatility in the market is expected.
As Cryptoics explained, every time the low interest rate also decreases the cost of indebtedness and there is more liquidity in the financial system. In these contexts is when investors place their holdings in assets considered “risk”, such as BTC and cryptocurrencies, to obtain greater returns.
On the other hand, when the interest rate is high, investors seek refuge in financial instruments such as treasure bonds, which generate less yields but are not exposed to market volatility.
