The January 2025 FOMC meeting is approaching and the crypto community is focused on the Federal Reserve’s interest rate decision. Recent developments show that the decision could be negative for the crypto market.
FOMC Meeting Date and Expectations
According to the Federal Reserve’s calendar, the January FOMC meeting will take place on January 28 and 29. The Fed will announce its interest rate decision at the end of this two-day meeting.
The crypto community is focused on this meeting to see whether the US Federal Reserve will continue the quantitative easing (QE) policies implemented last year. After three interest rate cuts in 2024, this decision will be important.
At the December 2024 FOMC meeting, the Fed decided to cut interest rates by 25 basis points, which was a positive development for the crypto market. However, Fed Chairman Jerome Powell’s speech showed that the committee took a tough stance despite the interest rate cut decision.
Bitcoin and What It Means for the Crypto Market
Fed’s decision to keep interest rates steady at next FOMC meeting, Bitcoin 
$93,857.8 It could be a negative sign for its price and the overall crypto market. Following the release of nonfarm payrolls data, Bitcoin lost value up to $92,000.
Keeping interest rates constant may cause investors to become more risk-averse. This may reduce investments in risky assets such as cryptocurrencies.
What to Consider Before the Fed Meeting
Before the January FOMC meeting, attention should be paid to inflation figures such as Producer Price Index (PPI) and Consumer Price Index (CPI). PPI data will be published on January 14 and CPI on January 15.
These inflation data will affect the Fed’s interest rate decision at its January meeting. While PPI is expected to increase to 3% on an annual basis, CPI is expected to increase to 2.8%.
Marketers think strong U.S. labor market data raises the possibility that the Fed will keep interest rates steady. CME FedWatch data shows there is a 93.6 percent chance that the Fed will leave interest rates unchanged.
Traders predict that the Fed will not cut interest rates in the first half of this year and will instead cut only once towards the end of the year.
If the Fed keeps interest rates constant, it may cause investors to reconsider their risk preferences. It is predicted that fluctuations in the crypto market may continue.
The crypto community continues to closely monitor market movements while awaiting the Fed’s decision. Changes in economic indicators may be decisive on the future of cryptocurrencies.
At the next FOMC meeting, inflation data and labor market data will play an important role in shaping the Fed’s interest rate policies. Crypto investors will determine their strategies by evaluating this data.
In this process, it is eagerly awaited how economic indicators will affect the activity in the crypto markets. It will be important for investors to make flexible and informed decisions in the light of data.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
