The Federal Reserve will announce the latest Interest Rate decision at 2 AM on June 19. The current Interest Rate remains at 4.5%. According to the prediction data from the Chicago Mercantile Exchange, the probability of maintaining the existing Interest Rate is as high as 99.9%.
How will the cryptocurrency market react to this almost certain outcome? Will Bitcoin and Ethereum decline further as a result?
Historically, if the market originally expects a rate cut but ultimately fails to achieve it, it usually leads to sharp short-term fluctuations and a lack of confidence in the medium term. The situation in December last year is a typical case - after the rate cut, the market failed to maintain its momentum, and prices instead fell, spreading disappointment among investors and leading to a prolonged period of low market confidence.
However, the market currently seems to have fully digested the expectation of "no interest rate cut". Investors even hold a pessimistic view, believing that whether there will be a rate cut this year has become an uncertainty. The cryptocurrency market is performing flat, and altcoins have hit new lows, and even if there is a rate cut, it may not lead to a significant rise.
In this case where the expectations have already been digested, even if there is no interest rate cut in June, the negative impact on the market may be very limited. On the contrary, if the interest rate is maintained in June, the probability of rate cuts in July and September will increase as the time approaches.
At this time, if unexpected positive news appears, it may have a stronger positive impact on the market, like a stone creating a thousand layers of waves. Investors should perhaps pay attention to the opportunities brought by this potential time window.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
The Federal Reserve will announce the latest Interest Rate decision at 2 AM on June 19. The current Interest Rate remains at 4.5%. According to the prediction data from the Chicago Mercantile Exchange, the probability of maintaining the existing Interest Rate is as high as 99.9%.
How will the cryptocurrency market react to this almost certain outcome? Will Bitcoin and Ethereum decline further as a result?
Historically, if the market originally expects a rate cut but ultimately fails to achieve it, it usually leads to sharp short-term fluctuations and a lack of confidence in the medium term. The situation in December last year is a typical case - after the rate cut, the market failed to maintain its momentum, and prices instead fell, spreading disappointment among investors and leading to a prolonged period of low market confidence.
However, the market currently seems to have fully digested the expectation of "no interest rate cut". Investors even hold a pessimistic view, believing that whether there will be a rate cut this year has become an uncertainty. The cryptocurrency market is performing flat, and altcoins have hit new lows, and even if there is a rate cut, it may not lead to a significant rise.
In this case where the expectations have already been digested, even if there is no interest rate cut in June, the negative impact on the market may be very limited. On the contrary, if the interest rate is maintained in June, the probability of rate cuts in July and September will increase as the time approaches.
At this time, if unexpected positive news appears, it may have a stronger positive impact on the market, like a stone creating a thousand layers of waves. Investors should perhaps pay attention to the opportunities brought by this potential time window.