Reserve

Terra Classic

Bitcoin

Terra

The U.S. economy appears to be preparing for a paradigm shift as the next Federal Open Market Committee (FOMC) meeting looms over the country’s economic horizon. With the current fed rates expected to remain the same, a whirlpool of speculations appears to be birthing for the projections of Fed officials for 2024. As the meeting is all set to commence in 11 days, the country’s financial landscape, including the crypto realm, embraces itself for a potential impact. Meanwhile, with inflation rates cooling down compared to last year, the U.S. economy appears to be thriving gradually.
<h2 id="interest-rates-likely-to-be-unchanged-a-detailed-report">Interest Rates Likely To Be Unchanged: A Detailed Report</h2>
With the robust labor market and moderating inflation, the Federal Reserve is anticipated to retain its stance on the current interest rates. The latest <a href="https://coingape.com/glossary/consumer-price-index-cpi/" target="_blank" rel="noopener noreferrer nofollow">Consumer Price Index (CPI)</a> data portrayed a significant decline in inflation rates since the past year. However, compared to the 3.14% mark last month, the current rate rests at 3.35%, contrasting with market anticipation. Moreover, the current inflation rate of 3.40 is still above the 2% range set by the Fed.
Meanwhile, Mary Daly, president and CEO of the Federal Reserve Bank of San Francisco, stated that the U.S. economy is “in a really good place.” She drew contrasting lines for the country’s current economic landscape with the previous year’s performance.
Aligning with this, the Fed Funds <a rel="noopener noreferrer nofollow" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank">target rates</a> are also anticipated to remain unchanged following the upcoming meeting. Although target rate possibilities for the 31 Jan fed meeting appear to hint toward the possibility of unchanged rates, a likely drop to 5.25 also seems looming. Notably, the probability for unchanged rates also mirrored the aforestated data, with <a rel="noopener noreferrer nofollow" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank">charts</a> showcasing a 97.9% possibility for no change.
The possibility of unchanged rates also appears to be staging for a potential impact on the crypto realm. As the interest rates remain poised to be unchanged, the current crypto market will continue to forge ahead. Whereas, if the rates drop marginally and reach 5.25, institutional investors and retail investors might look for investments in more volatile assets. Following this, crypto prices are also expected to take a bolstered effect, propelling the cryptographic venture within the nation.
Also Read: <a href="https://coingape.com/terra-classic-community-turns-down-major-proposal-lunc-price-retraces/" target="_blank" rel="noopener noreferrer nofollow">Terra Classic Community Turns Down Major Proposal; LUNC Price Retraces</a>
<h2 id="bitcoin-etfs-coming-into-play">Bitcoin ETFs Coming Into Play</h2>
With the recent approval of Bitcoin ETFs entering the arena, the country appears to be noting a significant surge in trading activity as the trading volume for these ETFs continues to soar.
Intriguingly, a potential drop might also aid these financial products, as investors might want to invest more in such assets. Meanwhile, despite unchanged rates, the ETFs appear to be positioning themselves as pioneers across the trading space. This further aligns with the colossal surge witnessed in inflows orbiting these ETFs.
Also Read: <a href="https://coingape.com/bitcoin-dominance-surges-past-51-in-pre-halving-phase-whats-next/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Dominance Surges Past 51% In Pre-Halving Phase, What’s Next?</a>
The post <a href="https://coingape.com/u-s-economy-in-good-place-what-it-means-for-the-crypto-market/" rel="noopener noreferrer nofollow">U.S. Economy In ‘Good Place’, What It Means For The Crypto Market?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

U.S. Economy In ‘Good Place’, What It Means For The Crypto Market?

Table of Contents

Coingape News Media

Other articles published on Jan 20, 2024

Manta Pacific’s Long-anticipated Airdrop Failed To Meet Expectations

1inch DAO Pioneers Legal Frontier with Legal Counsel Hire

Shiba Inu: Ethereum Whale Makes Massive Shib Purchase After Robinhood

Terra Luna Classic fans bullish as new tokens take off

Bitcoin Recovers Swiftly Amid Strong Selling Pressure

Crypto firms Celsius, FTX, and Alameda under scrutiny for ongoing crypto transfers

Join our free newsletter for daily crypto updates!