Bitcoin’s price surged to nearly $100,000 ahead of the Fed’s interest rate decision. While a steady rate is expected, odds for a cut remain low. Pressure mounts on the Fed, but inflation above the target keeps rates unchanged for now. A recent survey indicates eventual rate cuts could occur.
Bitcoin, the dominant force in the cryptocurrency realm, saw a remarkable surge today, touching an intraday high of $97,771 on the Bitstamp exchange. This notable increase comes just before a pivotal announcement from the U.S. Federal Reserve, scheduled for Wednesday. With many experts closely observing these developments, the price movement of Bitcoin has reignited discussions about market expectations regarding monetary policy.
Market analysts predict that the Fed will likely keep interest rates steady, a stance that aligns with prevailing economic indicators. According to Polymarket, a betting platform, the chance of the Federal Reserve implementing a 25-basis-point rate cut stands at a mere 2%. This indicates a general market consensus that major shifts in policy won’t occur just yet.
Pressure is mounting on Federal Reserve Chair Jerome Powell as various economic sectors call for adjustments to address ongoing inflation concerns. Despite the chorus for rate cuts, the Fed seems to be holding firm, citing that inflation remains above the widely accepted target of 2%. This defiance signals a cautious approach, contrary to what some policymakers and economists may prefer.
Interestingly, a survey by CNBC, conducted in May, reveals that a majority of participants expect the Federal Reserve to eventually cut rates amid looming economic challenges. The voices from the survey hint at an underlying belief that the Fed may have to pivot if economic conditions worsen significantly. As such, all eyes will be on the Fed’s upcoming decision and any hints at future monetary policy actions.
