FOMC Meeting June 18: Crypto Market Prepares for No FED Rate Cut Decision

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Why the Crypto Market is Sweating More Than You at a Family Reunion! 😅

So, Bitcoin is just chilling above $108,000, like it’s on a beach vacation, gaining over 2% in the last 24 hours. The entire crypto market is flexing with a solid $3.38 trillion valuation. But hold your horses, folks! As investors gear up for the next big Federal Reserve meeting on June 18, many are starting to temper their expectations—especially when it comes to interest rate cuts. Spoiler alert: it’s not looking good! 🙄

No FED Rate Cuts—At Least Not Yet

For months, traders were like, “Yes, please!” to the idea of the Fed cutting rates by summer. But then, surprise! Recent job data threw a wrench in the works. Hiring is still strong, and inflation is like that one friend who just won’t leave the party. So, the central bank is like, “Nah, we’re good.”

The CME FedWatch Tool is now showing a 99.9% chance the Fed will keep rates steady in June. That’s right, just a 0.1% chance of a 25 basis point cut. Looking to July, the odds of a rate cut sit at a measly 14.5%. Back in May, those chances were much higher—talk about a mood swing! 😬

Trump, ECB Push for Cuts—but Fed Holds Its Ground

The pressure is building on the Fed like a soda can shaken too hard. The European Central Bank just cut its interest rates by 25 basis points, and Donald Trump is out here calling for a whopping 100 bps rate cut in the U.S., claiming it would be “rocket fuel” for the economy. I mean, who doesn’t want a little rocket fuel, right? 🚀

But the Fed is playing it cool. They’re watching how tariffs and inflation will affect the economy before making any big moves. So for now, it looks like interest rates will stay between 425–450 basis points for the foreseeable future. Yawn! 😮

  • Also Read:
  • U.S. CPI Report to Decide Crypto’s Next Move – Will the Fed Hold Back?

How Crypto Is Reacting

Crypto markets are in a bit of a mixed mood, like me after a bad haircut. Bitcoin and Gold are flexing their muscles, while some traders are jumping ship from the U.S. dollar into riskier assets like crypto. According to Sergei Gorev from Youhodler, this trend is helping keep Bitcoin’s price elevated. Go, Bitcoin, go! đŸ’Ș

But not all signs are bullish. Gorev also points out that Bitcoin’s chart is showing a potential “Head and Shoulders” pattern. If that plays out, we could see prices drop to around $92,000. Yikes! đŸ˜±

With the FOMC meeting coming up and inflation data on the way, the crypto market is walking a fine line between optimism and caution. It’s like trying to balance on a tightrope while juggling flaming torches. Good luck! đŸ”„

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FAQs

What is the FOMC meeting, and when is the next one?

The FOMC (Federal Open Market Committee) sets U.S. monetary policy, including interest rates. The next meeting is June 17-18, 2025, where markets widely expect rates to remain steady given current economic data. Spoiler: it’s going to be a snooze fest.

How does the FOMC’s interest rate decision affect the crypto market?

If the Fed holds rates steady (or raises them), it can dampen risk appetite for assets like crypto, leading to range-bound prices or slight dips. Lower rates generally boost crypto by making borrowing cheaper and increasing market liquidity. So, it’s a bit of a double-edged sword.

What are the short-term and long-term crypto market reactions to FOMC decisions?

Short-term, crypto can see volatility based on the Fed’s “hawkish” (cautious) or “dovish” (easing) tone. Long-term, a “higher for longer” rate scenario might limit investment, but any easing signals could be a catalyst for price increases. It’s like a rollercoaster ride—hold on tight!

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2025-06-10 11:25