• Bitcoin and other cryptocurrencies dropped in value as investors await the Federal Reserve’s monetary policy decision tomorrow.
• The Federal Reserve is expected to increase borrowing costs by a quarter of a percentage point.
• The banking sector is in turmoil due to the collapse of Silicon Valley Banks and the Struggle of First Republic.
Federal Reserve Policy Decision Looms
The Federal Reserve’s upcoming monetary policy decision has crypto traders anticipating its effects on the market. The Federal Reserve is expected to increase borrowing costs by a quarter of a percentage point, which would be the 10th consecutive rate increase since March 2022. As investors wait for this announcement, Bitcoin and other major cryptocurrencies have experienced a drop in value today.
Silicon Valley Banks Collapse
The banking sector is currently facing turmoil due to the collapse of Silicon Valley Bank and the struggle of First Republic, which was sold to JPMorgan Chase. This adds further uncertainty regarding how tomorrow’s announcement from the Fed will affect investor sentiment and market trends.
Statement & News Conference Expected
A statement about tomorrow’s update from the Fed is expected at 2 PM on Wednesday, followed by a news conference chaired by Chair of the United States Federal Reserve Jerome Powell at 2:30 PM. During his speech at Economic Club of Washington in February, Mr. Powell caused severe fluctuations in crypto markets with an initial 0.66 % gain seen after his speech ended; however prices quickly started declining afterwards for popular currencies like Bitcoin and Ethereum.
BTC Price Drops Today
At this moment, one Bitcoin is priced at $28,078, which represents around 1.62 percent decline since yesterday’s trading session closed out. Similarly, many other major cryptocurrencies have also experienced a drop in their value as they await tomorrow’s announcement from the Fed with anticipation as to how it will affect investor sentiment and market trends in general moving forward into May 2023 and beyond.
It remains to be seen what impact the upcoming policy decisions from Federal Reserve will have on cryptocurrency markets moving forward into May 2023 and beyond; however given past performance it is likely that any announcements from Mr Powell could cause significant volatility across all cryptocurrency asset classes alike over coming weeks ahead