Crypto Market Awaits Fed Easing as Negative News Dampens Sentiment

IconCryptoNewsTerminal Staff04 Jul, 2024

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Crypto Market Awaits Fed Easing as Negative News Dampens Sentiment

Cryptocurrency traders are closely monitoring the Federal Reserve's monetary policy decisions, hoping for a change that could boost the market. Stefan von Haenisch, head of over-the-counter (OTC) trading at OSL Singapore, told Bloomberg that "We have a lot of negative news in crypto at the moment, with things like the Mt. Gox repayment, etcetera, so that's caused some illiquidity in the market." He added that "the crypto market in general is looking for the Fed to expand its balance sheet and have one or two rate cuts later this year." Analysts believe that a shift in the Fed's stance towards easing could provide a much-needed boost to the crypto market, which has been under pressure in recent months. However, it's important to note that any potential excitement around an ether spot exchange-traded fund (ETF) may be short-lived if there continues to be selling pressure in the crypto market. As the Fed's next meeting approaches, traders are watching closely for any signs of a dovish shift. A positive outcome could provide a much-needed lift to the crypto market and potentially trigger a renewed buying spree.

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