Fed Rate Hike Looms: Crypto Markets Prepare for Impact

The Federal Reserve's interest rate decision is being closely watched ahead of its announcement today. Traders are pricing in a 92.4% probability of a 25 basis point rate hike, which would lift the target range to 3.75%-4.00%. The expected tightening has already impacted the markets, with gold and silver drawing in roughly $550 billion in flows.

The recent conflict between the US and Iran has driven up energy prices, keeping inflation elevated and prompting the Fed to consider a rate hike. This move would put pressure on crypto markets, potentially affecting DeFi funding, token performance, and adoption.