The final FOMC meeting and Donald Trump's remarks sparked optimism about the end of Quantitative Tightening (QT) in April, positively affecting crypto markets.
FOMC Meeting and Market Impact
The Federal Open Market Committee (FOMC) conducted a meeting after which Donald Trump made a statement suggesting the potential end of Quantitative Tightening (QT) in April. This sparked positive sentiment among cryptocurrency investors, driven by the anticipation of lower rates in the medium term.
Interest Rates and Economic Growth
Despite optimism, interest rates remained constant. Federal Reserve Chair Jerome Powell emphasized the importance of high interest rates in combating inflation. He also revised downward the economic growth forecasts, indicating tough market conditions.
Market Expectations and Crypto Summit
Markets were influenced by expectations of rising inflation and the potential long-term effects of high rates. Arthur Hayes's analysis, predicting the end of QT by April 1st, sparked discussions. A crypto summit featuring Donald Trump and other key figures in digital assets is also anticipated, further supporting market sentiment.
Markets continue to react to FOMC decisions and political leaders' statements, supporting positive sentiment among cryptocurrency investors.
