The Fed’s policy sentiment and hopes for a soft landing provided support
After the White House administration pulled out on Saturday, investors turned their attention to the Federal Reserve on Sunday. Bets on a 25bp rate hike on Wednesday and a softer rate path to bring inflation to the target rate support level.
In the US, inflationary pressures have eased, and the economy is showing early cracks due to tightening credit conditions. Despite the tightening labor market conditions, bets have also been raised for a price hold in March, which would support BTC and the broader crypto market.
From the cryptocurrency market, relief risks from FTX and Genesis infections and hopes of Ripple winning the ongoing SEC v Ripple case are also a tailwind. However, regulatory risks remain a headwind, with the US administration urging regulators to take more steps to reduce cryptocurrency risks.
Today, there are no US economic indicators that investors should take into account. However, the Nasdaq Composite is likely to put pressure on the afternoon session as investors look ahead to the interest rate decision on Wednesday. This morning the NASDAQ mini index is down 23.25 points.
Investors should also keep an eye on cryptocurrency news. SEC v Ripple, FTX, and Genesis updates need to be considered.