Crypto Market To See Recover Rally Ahead Of FOMC Meeting – Predicts JP Morgan
After a week-long bear action, it appears that the bulls are trying to enter the market as the overall crypto market is flashing green. However, the global crypto market cap is still under $1 trillion and the world’s first cryptocurrency, Bitcoin is yet to regain its pace above the $20,000 level.
Amidst this unfavorable environment, the US Consumer Price Index (CPI) has suggested that the Federal Reserve’s decision to increase the interest rates will not be sufficient to control inflation. Hence, the central bank is expected to step in with a more hawkish approach.
On the other hand, JP Morgan, the financial service provider, predicts a bullish momentum for crypto. At the time of writing, Bitcoin is selling at $19,357 with a surge of 4.54% over the last 24hrs. However, in the last seven days, BTC has lost more than 13%, while ETH has given up nearly 20% in the last 7 days.
Crypto Market To Drop After FOMC Meeting?
Meanwhile, as per JP Morgan crypto market and the stock markets are about to see the bottom in the coming days while the firm’s global head Marko Kolanovic claims a bullish run for the market. Further, he says that the Fed will continue its decision to increase interest rates by 75 bps during the FOMC meeting scheduled for tomorrow.
Another popular analyst at CNBC, Jim Cramer is of the opinion that the present inflation rate is having a negative impact on equities and corporate earnings. But he also says that as the majority of investors are holding on to low positions, any positive news will push the market.
During tomorrow’s FOMC meeting, the US Federal Reserve is expected to hold on to its hawkish stance and increase its interest rate by 0.75%. On the other hand, analyst Michael van de Poppe expects the interest rate hikes to be around 100 bps.
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