Bitcoin And Crypto Are Braced For A Huge Fed Price Shock #CriptoNews

Bitcoin and crypto prices have stabilized after teetering on the edge of another tumble yesterday, with traders still reeling from a sudden sell-off that sparked fears of a “financial crisis.”

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The bitcoin price dropped sharply toward $100,000 before bouncing back to around $102,000 though bitcoin and crypto remain subdued despite BlackRock chief executive Larry Fink revealing a sovereign wealth fund bombshell.

Now, as Coinbase’s chief executive predicts when the bitcoin price could flip gold’s $18 trillion, bitcoin and crypto traders are braced for the Federal Reserve’s latest interest rate decision after U.S. president Donald Trump called for rates to come down sharply.

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ForbesSudden Fed ‘Financial Crisis’ Fear Sparks Huge Bitcoin And Crypto Price Crash PredictionBy Billy Bambrough

The market is pricing in a near-100% certainty that the Fed’s rate-setting Federal Open Market Committee (FOMC) will keep interest rates on hold, according to the CME Group FedWatch Tool, after cutting rates at each of its last three meetings.

“The current [bitcoin price] lull can be attributed to risk aversion ahead of the Fed meeting,” Alex Kuptsikevich, the FxPro chief market analyst, said in an emailed note.

The rate decision will be released Wednesday at 2pm ET, followed by the all-important press conference led by Fed chair Jerome Powell in which reporters will press him for a reaction to Trump’s comments that interest rates should come down by “a lot.”

“I think I know interest rates much better than they do, and I think I know them certainly much better than the one who’s primarily in charge of making that decision,” Trump said last week.

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ForbesLeak Reveals Musk’s Doge Could Be About To Trigger A Bitcoin-Inspired Price Game-ChangerBy Billy Bambrough

Last year, then-Republican candidate Trump said U.S. presidents should have a say over decisions made by the Fed, raising the possibility it could lose its independence.

“We expect [Fed chair Powell] to be as diplomatic as is possible, while firmly committing to Fed independence,” Ajay Rajadhyaksha, an economist at Barclays, wrote in a note seen by Axios.

“Now that Trump has been calling quite vocally for lower interest rates, if the Fed eases monetary policy it will create the impression that they caved to him and forfeited their independence,” Isabella Weber, economist at the University of Massachusetts Amherst, told the Financial Times.