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- 1 Reports say the two-day meeting minutely affects the crypto market and stock market.
- 2 Bitcoin and almost every token/coin of the crypto market impressively celebrated the new year 2024.
- 3 Research by Binance shows that 55% of survey participants use cryptocurrency for everyday purchases, and 10% make payments in crypto assets.
The two-day meeting of the United States Federal Reserve has stirred almost every finance market globally. However, analysts still believe the interest rate will remain unchanged after the meeting.
The prevailing sentiment is that the Federal Reserve may embark on rate cuts starting in May or June, driven by the resilience of the United States job market and inflation, consistently surpassing the central bank’s 2 percent target.
Recent statements from officials indicate a cautious and calibrated approach to potential rate cuts, dispelling concerns about rushed decisions. It is crucial to note that the crypto market will also be affected following the end of the meeting; the nature of the effect will be based on the FED’s decision.
If the FED makes a favorable decision, Bitcoin might grow above $45k.
According to Octavio Sandoval, director of investment at Illumen Capital, “When the Fed introduced restrictive monetary policies by increasing rates in 2022, this caused equity markets and cryptocurrencies to decline in valuation appropriately.”
Crypto Market Update
Bitcoin and almost every token/coin of the crypto market impressively celebrated the new year 2024, and the positivity in the market continued till the approval of spot ETF; a few days after the landmark decision of the U.S SEC, BTC price slipped below $40k.
Today, on January 31, 2024, a local media outlet in China reported that the region’s government plans to make significant amendments to the AML regulations. It is expected that the government has planned something worse against crypto even after imposing a ban in 2021.
The world’s 2nd leading crypto exchange has recently revised its fee structure, indicating that it will charge its institutional clients for large conversions from USDC to USD exceeding $75 Million.
When writing, the crypto market leader was trading at $42,759 with an intraday decline of 1.18%. However, the token’s trading volume slipped over 9%, making it the second most traded token in the market.
A day earlier, the Bar Association of New York suggested significant amendments in context to evolving technologies, such as digital assets, to encourage crypto firms to set up workplaces in New York and preserve the region’s preeminence as a leading commercial jurisdiction.
“New York risks that market participants will prefer one of those states for transactions involving digital assets or even the law of other countries, such as England, which are rapidly reforming their commercial laws to accommodate emerging technologies and electronic transactions.”
Research conducted by Binance states that 55% of survey participants use cryptocurrency for everyday purchases, and 10% make payments in cryptocurrencies. In 2023, Crypto(dot)com revealed that the global user base of crypto is above half a Billion and will reach one Billion in the coming years.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
