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<h2 id="header-0">The cryptocurrency market is in a severe slump, with prices hardly showing any optimistic feelings ahead of the Fed&#39;s big decision.</h2>The market is entirely reliant on the outcome of the <a href="https://www.coingabbar.com/en/crypto-currency-news-english/crypto-market-turns-red-ahead-major-fed-decision" rel="noopener noreferrer nofollow">FOMC meeting</a>. A poor reading of inflation in the US Consumer Price Index indicates that the Fed will go with another jumbo hike. However, certain market circumstances may prompt the Fed to pivot, resulting in a strong rally.Will The Fed Pivot?To address rising inflation, the Federal Reserve is engaged in quantitative tightening. According to the September CPI, inflation levels have not fallen as expected. As a result, the Fed is expected to raise interest rates by 75 basis points or 100 basis points. However, a number of circumstances might force the Fed to change course.The Federal Reserve&#39;s quantitative tightening is placing further strain on the lending market. The credit spread has increased by more than 70% in a year, making it harder for enterprises to borrow. Similarly, the risk of corporate debt default has risen to a perilous level as a result of the dollar&#39;s strength.Another concern that might drive the Federal Reserve to change course is a decline in treasure liquidity. The central bank is tightening its monetary policy by eliminating government and mortgage bonds from its balance sheet. Because of quantitative easing, the Fed&#39;s balance sheet grew during the pandemic.Lastly, the risk of global financial stability may drive the Fed to change course. The dollar has surpassed the Euro, potentially destabilizing the global market. The World Bank has already issued recession warnings for 2023.Is The Rate Hike Priced InIn less than 12 hours, the Fed will announce its <a href="https://www.coingabbar.com/en/crypto-currency-news-english/cpi-data-one-percentage-interest-increase-now-feasible" rel="noopener noreferrer nofollow">interest rate decision</a>. There are only two options: a 75-bps hike or a 100-bps hike. While a 75 basis point hike is likely priced in and would not trigger a crypto meltdown, a 100 basis point increase can be bad news for the <a href="https://www.coingabbar.com/en/price-analysis" rel="noopener noreferrer nofollow">crypto market</a>.Read also: <a href="https://www.coingabbar.com/en/crypto-currency-news-english/bitcoin-price-analysis-cmpdollar-btc-range-ahead-fed-minutes" rel="noopener noreferrer nofollow">BITCOIN PRICE ANALYSIS CMP$18900: BTC is in a range ahead FED Minutes</a>

Factors Influencing Fed To Hike Interest Rate More Aggressively

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