The FOMC’s Upcoming Meeting and Its Impact on Crypto

The FOMC is scheduled to meet tomorrow and the day after, potentially impacting crypto significantly. The market is precariously close to a bear market, and cuts to the interest rate could foster some growth.

However, Federal Reserve Chair Jerome Powell has shown reluctance toward these cuts, focusing instead on inflation and tariffs. President Trump’s potential intervention may serve as a promising avenue for rate cuts and a more positive outlook.

The FOMC Could Decide Crypto’s Fate

The US Federal Open Market Committee (FOMC) will convene on March 18-19, with major ramifications for US policy and the crypto sector. The committee will address key decisions regarding the US economy, particularly the possibility of cutting interest rates, which could be bullish for crypto.

Earlier this year, Fed Chair Jerome Powell indicated there are no plans to cut interest rates. His stance contributed to crypto outflows. The FOMC is mindful of the entire US economy, and any rate cuts might interfere with inflation management. Additionally, existing tariff threats have made some community members skeptical about Powell’s willingness to change course.

Currently, the market is in a troubling position. It was recently classified as being in a state of Extreme Fear, although this sentiment has eased slightly. Despite a slight improvement in consumer confidence, the crypto space lacks a compelling narrative to draw in average consumers, which isn’t sufficient for maintaining growth amid potential market disasters.

In this context, the FOMC may represent crypto’s most promising chance for creating a strong narrative. Following Trump’s election, the crypto market experienced a significant rally, but these gains have long since evaporated. Crypto remains intertwined with traditional markets, and a bear market could signal an impending recession, heightening the need for renewed investor confidence.

Could Trump’s Intervention Change the Equation?

Thus, the FOMC may provide critical support for the crypto industry. A recent US CPI report indicated that inflation was lower than expected, positively impacting crypto markets. This data might persuade Powell that the economy can withstand another interest rate cut, although the industry isn’t relying solely on this report for change.

Instead, President Trump could utilize his substantial influence in this matter. He has advocated for rate cuts, branding himself as the “Crypto President,” and has previously shown support for the industry; he may also lobby the FOMC.

A relevant case in point is Trump’s recent showcasing of Tesla products at the White House, which occurred during a downturn in Tesla’s stock price, raising fears of a valuation crash. However, following Trump’s endorsement on March 10, Tesla’s stock rebounded. Tesla is closely linked to crypto markets as well.

In essence, President Trump understands the significant impact market narratives can have on asset values and appears prepared to influence them. His intervention may encourage the FOMC to implement rate cuts, providing a crucial lifeline for crypto. Regardless, the community remains attentively engaged.