[ccpw id="39382"]

HomeCrypto NewsMarketBitcoin Resumes Correction Ahead of FOMC, Fed Rate Decision

Bitcoin Resumes Correction Ahead of FOMC, Fed Rate Decision

Date:

Written By:

Follow TheCryptoBasic

The crypto market is back in the red in what appears to be a Bitcoin-led rout ahead of crucial economic developments.

This week, the crypto market has been subject to significant turbulence, first as concerns over China’s DeepSeek spread risk-off sentiments and now as the market awaits details of the Federal Open Market Committee meeting and the Federal Reserve’s interest rate decision.

Bitcoin and the Broader Crypto Market Back in the Red

At the time of writing on Wednesday, January 29, the crypto market is back in the red in what appears to be a Bitcoin-led rout.

- Advertisement -

The leading digital asset is trading just above the $102,000 price point, down 2% from highs of nearly $104,000 on Tuesday, January 28, representing a roughly 1% decline over this time 24 hours ago.

Similarly, Ethereum, XRP, and Solana are respectively posting 3%, 0.40%, and 6% losses on the day.

Snapshot of crypto market data
Snapshot of crypto market data Source CoinMarketCap

The market is shedding some of the gains made in Tuesday’s DeepSeek panic recovery as traders appear to be locking in profits ahead of today’s FOMC meeting and the resulting interest rate decision.

Many hope the Fed will take a more dovish tone as the December 2024 Core Consumer Price Index and Producer Price Index came in lower than expected.

Still, the Fed is also not expected to change the current interest rate. Specifically, data from the CME FedWatch Tool suggests a 99.5% chance that the Fed will leave interest rates unchanged in the 4.25% and 4.5% range following today’s FOMC meeting.

- Advertisement -

The central bank sparked market panic with a hawkish pivot in December 2024, arguing that it may need to leave interest rates higher for longer as it expected inflation to linger.

Indeed, some experts have also expressed this sentiment in recent weeks following recent job numbers and the strength of the bond market. For instance, BlackRock’s Larry Fink has suggested that a rate hike is possible in the coming year.

Notably, beyond today’s FOMC and Fed rate decision, the market faces the European Area interest rate decision on Thursday, January 29 and the U.S. GDP release on Friday, January 30.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Okoya David
Okoya David
Okoya David Kio is a crypto enthusiast passionate about understanding what makes the nascent market tick. When he's not pondering about cryptocurrencies, you might find him in a BP debate room trying to proffer solutions to age-old societal problems.

More from Author

Latest Stories

Guides