Fed Rate Decision Sparks Uncertainty Ahead of Cryptocurrency Market

The Federal Reserve's (Fed) rate decision today is significant for Bitcoin and other cryptocurrencies, despite the lack of updated economic projections or interest-rate forecasts. Markets are still uncertain about the outcome, with a 35% probability of a rate increase assigned to CME fed funds futures.

Citadel, one of the largest hedge funds in the world, predicts an increase, citing that it would end forward guidance as a policy choice, which Chair Kevin Warsh has long favored. Bond yields are already rising, with both the 10-year and two-year Treasury yields breaking above key trendlines.

The oil price resurgence is also contributing to uncertainty, with WTI crude oil prices climbing nearly 20% this month. This could lead to a renewed increase in inflation, despite June's relief following an earlier oil-price selloff.