The new interest rates decided by the Fed could be decisive for the short-term future of Bitcoin. Appointment on January 31st

Bitcoin and the post-ETF era

After having even fallen below $38,000, Bitcoin has recorded a good reaction in recent days, returning above the $42k level.

However, according to some industry experts, what will confirm or betray this increase will be an element external to the crypto market, namely the Fed's decision regarding the new (and first) interest rates for 2024. The entire financial sector is looking at this decision with particular attention, waiting for the moment when the Fed could actually start to lower interest rates.

The same uncertainty regarding such a scenario would be determining the cautious attitude of investors, between crypto, raw materials and stock markets, for this reason, a decision in this direction could call into question all economic balances.

The new decision on rates will be taken by the Fed on January 31st, and for now the rumors suggest that President Jerome Powell intends to leave rates unchanged once again. However, positive data from the American economy and a slow decline in inflation could also lead to unexpected decisions.

What is certain, according to analysts, is that a decrease will still occur during the year, probably in the spring, around April. FED Watch even indicates the probability that rates will remain unchanged in January at 97%, while at 47% in March.

What to expect from the Fed

As we have reported in recent weeks, the Fed has aimed in the recent past to keep rates constant, in the range of 5.25-5.50%, but perhaps the time has come to loosen the hand of monetary policies.

As every time, we will be here on time again in two days, to update in real time on the Fed's decision and on Jerome Powell's words.