Crypto traders are looking ahead to the next big economic event, the Federal Reserve’s monetary policy decision due out Wednesday at 2 p.m. ET.
“Personally I’m not ready to 100% call a bottom here yet, as I would like to see exactly how the economy reacts in the fourth quarter to a 3% to 4% federal funds rate,” Nick Mancini, director of research at Trade the Chain, told CoinDesk TV.
One thing that may or may not be discussed but should be: As speculation mounts over when the Federal Reserve might pivot dovish, some economists, including former U.S. Treasury Secretary Lawrence Summers, are warning that any such move might lead to weakness in the U.S. dollar versus other global currencies. That, in turn, could drive up prices for imports – possibly frustrating the Fed’s primary goal of bringing down inflation.
● CoinDesk Market Index (CMI): 1,026.83 +0.5%
● Bitcoin (BTC): $20,440 +0.3%
● Ether (ETH): $1,576 +0.7%
● S&P 500 daily close: 3,856.10 −0.4%
● Gold: $1,651 per troy ounce +0.9%
● Ten-year Treasury yield daily close: 4.05% −0.0
Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.
Money Supply Growth Is Falling, an Encouraging Sign for Fed Progress
By Glenn Williams Jr
Crypto observers hoping for a more dovish turn in monetary policy may look optimistically at a percentage decline in the M2 money supply growth from a year ago.
The parabolic increase in U.S. money supply during 2020 is largely behind the current inflationary environment. The reduced supply growth could be evidence that recent Federal Reserve measures are working.
Bitcoin and ether were trading sideways on Tuesday, albeit slightly to the green, a day ahead of the Federal Open Market Committee’s latest interest rate decision.
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