The Bitcoin and crypto market is eagerly awaiting the forthcoming US Federal Reserve’s interest rate decision, coupled with the subsequent FOMC press conference featuring Fed Chairman Jerome Powell. These events hold the potential to impact not only Wall Street but also the decentralized world of Bitcoin and crypto.

FOMC and Interest Rate Decision on Wednesday:
Scheduled for September 20th, the Federal Open Market Committee (FOMC) meeting has market participants strongly anticipating a pause on interest rate hikes. The FedWatch Tool indicates an overwhelming 98-99% likelihood of interest rates remaining stable. This means that the Federal Reserve is likely to maintain the benchmark Fed funds target range between 5.25% and 5.50%, which is the highest level since January 2001. Following the rate decision, all eyes will be on Jerome Powell’s speech, as investors seek insights into future monetary policy.

Release of New Forecasts: ‘Dot-Plot’ Analysis:
In addition to the interest rate decision, the FOMC is also expected to release new forecasts for interest rates and economic growth, commonly referred to as the ‘dot-plot’. This release could potentially become the most important market driver throughout the event. Analysts and investors will keenly assess the economic situation in the USA, particularly regarding the timing of the first interest rate cut. With inflation still above target levels and increasing expectations of a hawkish tone from the Federal Reserve, the door remains open for potential rate hikes in the months ahead.

Concerns over the US Economy:
Notably, the market is expressing concerns over an unusually large gap between US GDP and GDI (Gross Domestic Income). This gap is the largest ever recorded and mirrors conditions observed prior to the 2008 financial crisis. Speculations about the health of the US economy and the global economic landscape at large have been fueled by this comparison, adding an additional layer of uncertainty to the equation.

Bitcoin Price Outlook:
Crypto investors are acutely aware of the potential macroeconomic impact on the digital asset market. The prevailing sentiment suggests that Bitcoin’s price will be significantly influenced by the outcomes of the FOMC meeting and Chairman Powell’s subsequent comments. Renowned market analysts have already weighed in on Bitcoin’s price trends, emphasizing the importance of the FOMC announcement. While some anticipate volatility, others highlight the positive market conditions, citing Bitcoin’s current bullish position above the 200-Week EMA.

US Dollar Meets Bitcoin:
The performance of the US dollar (DXY) is also under scrutiny, as hedge funds have turned net long on the currency for the first time since March. Given the inverse correlation between the US dollar and Bitcoin, a rising US dollar index could potentially exert selling pressure on Bitcoin. However, it is crucial to note that the recent rise in the US dollar is primarily attributed to the weak euro following the ECB decision. Consequently, in smaller time frames, Bitcoin has not displayed an inverse correlation with the rise of the US dollar.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.