Fed Decision Could Dictate Bitcoin's Trajectory

Dow Jones10-28 18:13

1013 GMT - The Federal Reserve's policy decision at 1800 GMT is the most important immediate catalyst for bitcoin, Zaye Capital Markets analyst Naeem Aslam says in a note. The Fed is expected to leave interest rates unchanged but the accompanying policy statement and press conference will be particularly important as investors are increasingly focused on whether slowing employment growth and moderating industrial demand justify a more accommodative policy outlook, he says. Any signals about future tightening could strengthen the dollar, push Treasury yields higher and increase selling pressure across cryptocurrencies, he says. Conversely, "guidance indicating greater concern about economic slowing could encourage renewed institutional allocations, improve liquidity expectations and support bitcoin's recovery." Bitcoin rises 0.9% to $81,416, LSEG data show.

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