Fed Rate Decision Sparks Crypto Market Jitters
The crypto market is bracing for a potentially volatile day ahead of the Federal Reserve's FOMC Rate decision, set to be announced at 2:00 p.m. ET today.
A majority of interest-rate futures have predicted a rate hold with an 79% probability and only a 21% chance of a one-quarter point hike.
The Fed has maintained the federal funds rate between 3.50% and 3.75% since its last meeting in June, with Chairman Kevin Warsh speaking at 2:30 p.m. ET after the decision is released.
A surprise rate hike could trigger major crypto market volatility, as increased borrowing costs would boost returns on safer assets and decrease demand for risk-based investments such as Bitcoin, Ethereum, and XRP.