Fomc and its possible imapct on crypto
Rate Cut: 0.25%
✅ Bullish
Lower interest rates make risk assets (like Bitcoin & altcoins) more attractive, as yields on USD decline.
Future Rate Path (< 3.5%)
✅ Strongly Bullish
A signal of deeper cuts ahead would imply looser liquidity → easier money → crypto inflows.
Future Rate Path (> 4%)
❌ Bearish
Suggests tightening or hesitation — less liquidity, stronger USD, weaker crypto demand.
Inflation Trend (> 3%)
❌ Bearish
Persistently high inflation forces Fed to stay hawkish → pressure on crypto.
Inflation Trend (2–2.5%)
✅ Bullish
“Goldilocks” range — inflation contained, but still enough growth for markets to thrive.
Unemployment (> 4.5%)
⚠️ Neutral to Bearish
Rising unemployment = weaker economy = possible risk-off sentiment → short-term bearish for crypto.
Fed Balance Sheet — ending QT (Quantitative Tightening)
✅ Bullish
Stopping asset reduction = more liquidity in system → supports Bitcoin & altcoins.
Fed Tone (“Data-Dependent”, “Cautious Easing”)
⚖️ Mixed to Bullish
Market prefers steady, predictable dovishness — sudden hawkish turns can spook risk assets.