The crypto market awaits another key rate hike decision by the U.S. Federal Reserve as the banking crisis and the debt ceiling crisis raise risks of an “economic catastrophe”. Bitcoin and Ethereum price continues upside momentum as the Fed is expected to hike rates by another 25 bps after the monetary policy meeting on Wednesday, bringing borrowing to 5%-5.25%.
Market sentiment for the next few weeks fully depends on Fed Chair Jerome Powell’s guidance on rate hikes in the future. Dow Jones, S&P 500, and Nasdaq index futures are trading flat in green today, with GDP growth and earnings coming in lower for the first quarter. The collapse of First Republic Bank has renewed banking crisis fears, but JPMorgan predicts the banking crisis is almost over.
Fed Officials and Wall Street Estimates on Rate Hike Decision
Former Federal Reserve Bank of Dallas President Robert Kaplan said the US Federal Reserve should consider a “hawkish pause,” signaling a pause in its aggressive rate hike campaign while maintaining a tightening stance. He believes the banking crisis is just getting started as shares of US regional lenders fell sharply on Tuesday.
JPMorgan chief market strategist Tai Hui asserts the economy is gradually slowing as job openings data revealed Tuesday. He believes the Fed should hike rates by another 25 bps and then pause. He cites the Reserve Bank of Australia rate hike yesterday after a pause last month. Further, he argues rate cuts are coming this year and the Fed will look to bring inflation to its target rate by 2024.
Wall Street banks overall forecast a 25 bps rate hike this month. Barclays, Goldman Sachs, JPMorgan, Morgan Stanley, and others predict a rate hike before starting to pause. As per the CME data, the probability of a 25 bps rate hike is almost 89%.
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Bitcoin Price Expected to Hit $30K
BTC price jumped 2% in the last 24 hours, with the price currently trading at $28,652. The 24-hour low and high are $27,935 and $28,881, respectively. Furthermore, the trading volume has increased slightly by 5% in the last 24 hours, indicating an interest among traders.
The US dollar index (DXY) fell to a low of 101.51 today. The DXY is showing volatility and is likely to jump higher after the Fed rate hike. It will bring some pressure on the Bitcoin price. However, the positive sentiment will prevail of Powell hints at a pause in the coming months.
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The post Bitcoin (BTC) Price To Hit $30K Or $26K? US Fed, Wall Street Predictions appeared first on CoinGape.
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