FOMC meeting and its impact on crypto!

FOMC meeting is very important in crypto. We often hear such news in the market that the FOMC meeting is going to be held at twelve or two tonight or this time and the market may be up or down based on it. Means the market becomes volatile during the meeting. So it goes without saying that it is very important for us especially those who trade crypto. FOMC data is mainly determined during FOMC meetings. And if this data is less or more, it affects the market. So how do we understand the market after seeing this data? Let's discuss about that.

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We know the crypto market goes up and down depending on different news. This is one of them. For example, the FOMC meeting was held at around 12:00 pm yesterday and the whole market was a bit sluggish due to this. But most people predicted yesterday that the Fed rate cut yesterday would not be a rate cut. That is, it will be the same as before. The Fed's interest rates are set by the FOMC meetings. That means the meeting that took place yesterday and the interest rate that was decided is just what it was before. The Federal Reserve left interest rates unchanged yesterday. Remained at 4.25% - 4.50%. This means, the bank interest rate will remain as it was before.

Now the question is how do you understand how the market will react after seeing this news? Interestingly, the crypto market behaves normally when the Federal Reserve interest rate remains unchanged. For example yesterday when this interest rate was unchanged there was no movement in the market or ups and downs. The market behaved normally. However, if the Federal Reserve raises the interest rate through this meeting, then it is a bad news for the crypto market because when the interest rate in the bank is good, everyone feels safer to keep the money in the bank. So they then withdraw the money from the crypto and put it in the bank or invest it in a bond type thing. Then the market basically saw a dump.

On the other hand, if banks cut interest rates, that is positive news for the crypto sector. And when such news enters the market, then the market starts pumping. The reason is that when interest rates are lowered, investors all withdraw money from banks and invest in crypto, forex, stocks. So we see a spike in the market when the rate is cut. But the market only gives a large level of movement when these data changes in large numbers. Otherwise the market goes up/down for a short time and then returns to normal.