FED Emergency Gathering Could Guide Crypto Market Movement
- Special FED get-together could set the tone for crypto market direction next week.
- James Bull believes the FED might reduce interest rates to prevent further banking failures.
- Crypto prices could increase or decrease depending on the actual CPI figures expected on Tuesday.
Metaverse expert James Bull tweeted that the outcome of a special FED meeting set for Monday, March 13, 2023, could have an effect on the crypto market in the upcoming week. Bull believes that the financial authorities might reduce interest rates to protect banks from the same type of issues experienced by Silicon Valley Bank.
Bull also addressed the possibility of another fundamental indicator, CPI, to be released after the FED’s emergency gathering. According to Bull, a higher-than-expected CPI figure would bring about a price surge in the market, while prices will go down if the figure falls below the projected amount.
Next week will be huge. On Monday, FED emergency gathering and they may introduce cutting interest to stop other banks with locked-in bonds from facing the same issue. On Tuesday, bullish CPI release. Market will rally if it’s better than the forecast & fall if it’s weaker.
— James Bull (@MariusCrypt0) March 11, 2023
Federal Reserve Board of Governors organized a private emergency gathering at 11:30 a.m. on March 13, 2023. According to a statement, the policy-making entity planned for the “Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.”
Public opinion suggests that the financial institution fixed the emergency gathering due to the sudden collapse of Silicon Valley Bank (SIVB) whose assets were seized by the Federal Deposit Insurance Corporation (FDIC).
The SIVB crash is extraordinary and stands as the second-largest bank failure in the history of the United States. It is the most significant bank failure since the notorious economic crisis of 2008.
SIVB went down last Friday, throwing the banking sector into panic before the weekend. The full effect of the damage done to the industry is yet to be seen as the status of billions of dollars of uninsured deposits is not known as the new week begins.
The FED fixed the emergency gathering one week ahead of a gathering planned for March 21 – 22, 2023. Apart from the FED meeting and CPI figures, other events that could influence the market in the upcoming week include the UK budget and the results of the ECB meeting.
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