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The <a href="https://news.todayq.com/nasdaq-signals-for-crypto-tech-adoption-report/" target="_blank" rel="noreferrer noopener">global digital asset market</a> registered a decline for the third consecutive day as the industry keenly awaits the Federal Open Market Committee (FOMC) meeting. The cumulative crypto market cap dropped by 1.5% over the past day in anticipation over yet be decision taken on the crucial interest rate cut. However, Bitcoin (BTC) and Ethereum (ETH) took a marginal dip ahead of the meeting. FOMC meeting to direct crypto market ahead 
The upcoming Federal Reserve meeting is expected to mark a major shift in policymakers’ strategy after fighting with rising inflation for the past two years. However, it is anticipated that an immediate rate hike decision is minimal. The focus is on a change in the policy trajectory. 
The clash between the Federal Reserve and the financial markets is intensifying as the US economy refuses to keep in the 5.5% standard <a href="https://news.todayq.com/bitcoin-bull-run-might-halt-as-goldman-sachs-eyes-fed-cut-delay/" target="_blank" rel="noreferrer noopener">interest rate</a> set in 2023. These events have led down the crypto market to extend its good run ahead. 
As per reports, the post-meeting statement given by the Federal Open Market Committee might see a communication stating that it will maintain the standard interest rate within the 5.25%-5.5% range. 
According to research from the Federal Reserve Bank of San Francisco, a 1% interest rate increase can reduce USGDP by 5% for 12 years after an unexpected hike.&nbsp; Turbulence ahead? 
However, Some economists have reportedly argued that financial markets may react smoothly to the Federal Reserve policy announcements. This will be different than the scenario when actual rate changes take place and inject uncertainty into both traditional and crypto markets. As the standoff continues, analysts closely watch for signs of which side will yield first in this high-stakes economic showdown. 
The Fed leaders are anticipating a growth slowdown due to their interest rate decisions, while the increase in borrowing costs doesn’t directly impact all consumers. It added that sectors like first-time homebuyers are still feeling the pain. 
Earlier, Todayq reported that Goldman Sachs is seeking a possibility that the statement might not see mention of tighter financial conditions. This will signal a departure from the aggressive rate hikes.&nbsp; 
A poll conducted of 102 economists by Reuters disclosed that more than the majority of them are expecting US FED Res to maintain interest rates until at least July. This will lean towards a sooner adjustment to real interest rates rather than a delay. 
The crypto market stands confused as it was in the mid of a long-awaited bull run. Bitcoin has gained over 150% since the beginning of the year 2023 dropping by around 7% in the last 7 days. 
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Who will blink first? Fed or crypto market?

Todayq News

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