The Federal Reserve (Fed) has decided to keep interest rates unchanged. Experts suggest this might positively impact the cryptocurrency market, with increased interest expected from investors, especially from China.
FOMC Meeting Expectations
Ahead of the Federal Open Market Committee (FOMC) meeting, it was expected that interest rates would remain unchanged. Currently, the prime rate stands at 7.5%, and the federal funds rate is at 4.5%. Many market participants anticipated no change, which was confirmed eventually.
The Decision & What It Means for Markets
The Fed's decision to hold rates steady may be neutral for markets. However, several macroeconomic indicators favor cryptocurrency growth. The increase in M2 money supply and stablecoin capitalization could act as catalysts for positive shifts in the crypto market.
Chinese New Year Also Bullish
The Chinese New Year, marked by the start of the Year of the Snake, is traditionally a favorable time to invest in Bitcoin. As Chinese individuals travel to smaller towns and villages, information exchange about cryptocurrency increases, boosting interest in these digital assets.
With stable interest rates and specific conditions related to the Chinese New Year, the prospects for the cryptocurrency space appear favorable. The growing money supply may also support the strengthening of Bitcoin and other assets.
