Bitcoin investors are eagerly awaiting the outcome of the Federal Open Market Committee (FOMC) meeting, scheduled to take place on May 2-3, 2023. The decision on interest rates and the associated sentiments expressed by Federal Reserve Chair Jerome Powell could determine the next direction of Bitcoin’s price movement.
With several rumors circulating in recent weeks about an imminent rate hike, most investors expect the FOMC to increase interest rates. Silicon Valley Bank’s collapse and the debt ceiling disaster have led policymakers to embrace rate hikes as a temporary measure to curb inflation.
During the press conference on May 3, Powell will read a prepared speech outlining the meeting’s report. However, the more significant impact will come from the unscripted answers Powell provides during the Q&A session. Investors will interpret Powell’s hawkishness over the economy from his responses to the questions raised, which could create market volatility.
If Powell presents a hawkish appeal to the meeting’s outcome and questions raised, the US dollar might strengthen, pushing Bitcoin towards lower support. Alternatively, if the committee keeps the rates the same or reduces them, Bitcoin could experience significant volatility that could lead to more losses and push it deeper into a correction.
Investors should note that the views and opinions expressed in this analysis are published in good faith. Readers must conduct their own research and due diligence, and any action taken by the reader is strictly at their own risk.
