Crypto markets remain cautious as new Federal Reserve Chair Kevin Warsh addresses his first Federal Open Market Committee (FOMC) meeting after taking office in May. According to the CME FedWa
Crypto markets remain cautious as new Federal Reserve Chair Kevin Warsh addresses his first Federal Open Market Committee (FOMC) meeting after taking office in May.
According to the CME FedWatch Tool, there is about a 99% chance that interest rates will remain the same.
CME FedWatch Tool as of June 17 The decision will be announced at 2:00 p.m. ET followed by a press conference held by Warsh 30 minutes later.
Related: Mysterious trader moves $200M before Warsh's first FOMC
Economist Mohamed El-Erian called it "a historic day at the Federal Reserve."
"The most interesting aspect of today’s outcomes will not be the rate decision, where the universal expectation is no change. Rather, it will be how the Committee characterizes the balance of risks to the Fed's dual mandate, and how Chair Warsh initiates what many (including myself) see as a long-overdue revamp of the central bank's operational approaches, starting with communication."
Ahead of the announcement, crypto markets are bracing for the decision.
Over the past 24 hours, as per Decibel, Bitcoin (BTC) has dropped by 1.4% and stabilized near $65,174.
XRP was down by 1.7% to change hands near $1.19, while Ethereum (ETH) was down over 2% to trade near $1,763.
Solana (SOL) had also dropped more than 2% to change hands near $72.48.
XRP/USD via DecibelThe broader crypto market also weakened, with total market capitalization slipping 1% to $2.32 trillion.
Federal Reserve rate decisions move crypto because they set the price of money across every market.
When the FOMC cuts rates, borrowing gets cheaper and safe assets like Treasuries yield less, pushing investors toward riskier, higher-growth bets. This includes Bitcoin and other crypto tokens.
Cheaper money also tends to weaken the dollar, which often lifts crypto, especially Bitcoin's debasement narrative.
But when the Fed hikes, the opposite happens. Richer "risk-free" yields make non-income assets like Bitcoin less attractive, and liquidity tightens.
Related: Economist who predicted 2008 crash reveals next Bitcoin target
