The U.S. Federal Reserve is expected to announce its decision to maintain interest rates at 2 AM Beijing time on June 19. According to CME FedWatch data, the probability of unchanged rates is 99.9%.
The decision is set against a backdrop of high anticipation within the crypto market, which historically reacts sensitively to rate changes. With such stability anticipated, Bitcoin (BTC), Ethereum (ETH), and other macro-correlated altcoins might see limited immediate volatility.
Federal Reserve Decision: 99.9% Chance of Rate Stability
The Federal Reserve, led by Chairman Jerome Powell, is projected to keep interest rates unchanged according to CME’s FedWatch tool. This decision aligns with expectations from leading financial institutions, leaving a mere 0.1% chance of a rate cut for June.
In the broader financial landscape, predicted stability could cap growth potential for major cryptocurrencies. Prolonged rate stability generally results in controlled volatility, suggesting limited short-term downside for crypto assets and aligning with muted institutional participation.
“We recognize the need for regulatory clarity as digital assets become more integrated into the financial system. We’ve taken steps to rescind restrictive guidance and encourage innovation, while prioritizing consumer protection.” — Paul Atkins, Chairman, SEC
Bitcoin’s Market Cap Holds Strong Amid Stability Forecast
Did you know? Major crypto rallies have often coincided with significant Federal Reserve rate cuts, as increased dollar supply has bolstered speculative asset prices.
According to CoinMarketCap, Bitcoin (BTC) holds a market cap of $2.10 trillion with a market dominance of 63.99%. Despite a 1.65% dip over the last 24 hours, the 90-day price change remains a positive 22.72%. Trading volumes reached $52.95 billion.
Coincu research highlights the potential for long-term stability, as both regulatory adaptations and macroeconomic consistency fostered by the Federal Reserve can encourage cautious optimism in investment strategies across both DeFi and traditional finance sectors.
