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Crypto Markets Flash Red Ahead of FOMC Rate Hike Decision This Wednesday

Inflation data last week has caused crypto markets to trade lower. Participants in the market weigh the possibility of a Fed rate hike of 100bps...
bitcoin trading screen
Photo by Behnam Norouzi

Inflation data last week has caused crypto markets to trade lower. Participants in the market weigh the possibility of a Fed rate hike of 100bps on Wednesday. 

Over the weekend, crypto markets fell after the inflation data for last week came in hotter than expected . This shattered investors’ hopes that July’s CPI print might have indicated high inflation.

Markets fear a huge interest rate hike of 100bps by the FED on wednesday


CME FedWatch Tool now indicates that there is a 20% chance of a 100bps increase during Wednesday’s FOMC meeting. This is up from 0% a week ago.

Bitcoin was trading at \$19,090 as of the writing. This is a drop of over 16% from the CPI print. In contrast, ether trades at $1.343, down 23% in the same time period.

According to Goldman Sachs research, the bond market also expects a 25 percent chance of a 100bps increase for Wednesday’s meeting. Analysts are expecting 50bp increases in November and December, which would bring the funds rate up to 4-4.25% by year end.

Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".
Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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