Bitcoin, Ethereum, Altcoins Ready For Price Volatility As Fed Meeting Nears

The US Federal Reserve (Fed) will convene on September 20–21, 2023, to talk about the future of interest rates. Investors predict that the Fed will keep increasing interest rates in an attempt to fight inflation, therefore the conclusion of this meeting is likely to have a big effect on the cryptocurrency market.

Increases in interest rates make it more costly for investors to borrow money to purchase cryptocurrencies, which may have a negative effect on cryptocurrency pricing. Additionally, if interest rates rise, investors may decide to sell their bitcoin holdings in favor of conventional assets like bonds.

Bitcoin, Ethereum, and other cryptocurrencies have been relatively calm in the run-up to the Fed meeting, with prices trading in a constrained range. Analysts anticipate that volatility will increase when the Fed makes its announcement.

What to anticipate at the Fed meeting

At its September meeting, the Fed is anticipated to increase interest rates by an additional 75 basis points. The federal funds rate would thus range from 2.25% to 2.50% as a result.

If the Fed increases interest rates more than anticipated, the market for cryptocurrencies may see a dramatic decline. On the other hand, if the Fed increases interest rates by less than anticipated, this might raise the price of cryptocurrencies.

How to be ready for price turbulence

Cryptocurrency owners who hold investments should be ready for the likelihood of price volatility after the Fed meeting. Here are some pointers:

• Have a strategy: Investors should have a strategy in place in case the value of their cryptocurrency increases or decreases. To do this, you may place stop-loss orders or take gains at certain price points.
• Use a trustworthy cryptocurrency exchange: Only on a trustworthy cryptocurrency exchange can investors purchase and sell cryptocurrencies. The danger of theft or fraud will be reduced as a result.
• Know the hazards: Those considering investing in cryptocurrencies should be informed of the risks, including the possibility of price volatility. Only invest what you can afford to lose, according to investors.

The Fed meeting's result is anticipated to have a big effect on the cryptocurrency market. Price volatility is a possibility for investors, so they should be ready for it and have a strategy in place for how they will react.