Bullish signal. Analyst Michaël van de Poppe explains the impact of the FOMC meeting on the crypto market
According to the expert’s prediction, the Fed will raise the interest rate by 75 basis points
02.11.2022 - 14:00
452
2 min
0
The FOMC meeting will be this Wednesday. We expect the following: 75 bps.
Based on this expectation, markets try to anticipate. For example, some speculators take a position and others remove themselves from the market. We call this, ‘pricing in’.
If the bps is 75, this would mean that the market is neutral. In this case neutral means that there is lots of volatility (price movements), but there are no clear signals of a bear or bull market.
Is the actual rate hike 100 bps (higher than expected) then this will be very bearish for the markets. If the rate hike 50bps (lower than expected) then will be bullish for the markets.
As you understand by now, the FOMC meeting is very important as it determines the direction of the market for the upcoming period.
Also interesting to know is that last week, some policymakers indicated that they disagree with the level and pace of the rate hike. They think the rate hikes are going too fast, and therefore the economy cant handle the rate hikes. There is a small chance that the FED will choose for a 50 bps rate hike, because a 75 bps rate hike will be too hard to handle for the economy.
In a macroeconomic downtrend, where money is taken out of the market, all markets trend toward each other. This means that equities, commodities and crypto will all react in exactly the same way. The common denominator is global liquidity. If liquidity (i.e. money supply in the economic system) decreases, markets trend downward, if liquidity increases, markets will have a positive impulse.
As Crypto investors anticipate this reversal in liquidity, because this means the switch from bear market to bull market.
For now, the most important thing to understand is that we want to see the economy getting worse. Because then it's more likely that policies will finally change. And therefore we will improve the economy, and people will invest again in assets like crypto.
This material is taken from the website https://eightglobal.com.
Useful material?
Incidents
The company is linking the incident to a compromised private key on a service wallet, rather than a smart contract exploit
May 22, 2026
Incidents
Following the incident, the project temporarily halted trading operations and node activity.
May 15, 2026
Incidents
The user spent weeks unsuccessfully trying to guess the password until Claude helped find an old wallet backup file
May 14, 2026
Crypto regulations
Authorities are introducing mandatory registration for companies handling cross-border crypto transactions
May 8, 2026
Incidents
According to Blockaid, the attack may have been carried out by the same hacker behind the 1inch Fusion V1 exploit.
May 7, 2026
Incidents
The attacker gained administrative access and altered contracts to drain user funds
Apr 30, 2026
Telegram
Twitter