After undergoing a massacre, the bulls have uplifted the crypto space to some extent. The Bitcoin price is approaching $16,500, while the Ethereum price rose beyond $1100 after withstanding extreme bearish pressure. However, the upward swing is expected to prevail until the FOMC reveals its agenda for the upcoming meeting.
FOMC meetings are somewhat bullish for the entire crypto space as the authorities take down stringent actions to curb rising inflation. This in turn impacts the crypto space positively but for only a very small time frame. Meanwhile, the upcoming minutes of the meeting may adversely impact the cryptos & equities as well.
A popular analyst, tedtalksmacro, who provides insights about the traditional markets which impact the crypto spaces and believes that a reversal of hopium appears likely today. The October CPI print went more negative than expected that uplifted both equities & crypto space for a while.
Considering the previous reaction, the FED is likely to use the FOMC meeting minutes to bring back the markets in line. Therefore, one can expect the hawkish language and their commitment to higer rates for longer. This may further compel the equities & cryptos to react negatively when the minutes are released.
Secondly, the FED chair Jerome Powell is expected to speak on November 30, 2022, at the Brookings Institute where-in he may follow the Jackson Hole-like presentation which had led to a 4% sell-off in US equities earlier. This is considered extremely important as the speech is immediately followed by the FOMC blackout period.
Despite the crypto markets have been witnessing a slight upswing since the early trading hours, the selling pressure may mount up with the release of FOMC MoM. Therefore, traders are expected to be cautious as the crypto markets may remain volatile for a while.
Source: https://coinpedia.org/news/top-3-reasons-why-crypto-market-is-going-up-today-is-fomc-fueling-the-rally/