FOMC meeting week

This week, on September 20th, at 2:00pm the official FOMC meeting begins. This is where the Federal Reserve and their chairman Jerome Powell will decide how badly they want to hurt ordinary citizens in order to correct their own previous mistakes in monetary policy. And ever since the beginning of 2022, they have opted for constant pain.

Now, the markets, both stock and crypto, initially had a positive start to 2023. Investors seemed to think that since inflation seemed to be coming down based on the (manipulated) numbers that were announced, that the fight was almost over. Soon, interest rates could start getting cut, and we could all go back to buying volatile assets like crypto and watching their value skyrocket as we danced in delight.

However, around June of 2023 the darkness began to infect the reverie. Headline inflation numbers stopped consistently going down, and appeared to start rising instead. The FED decided to use these anxiety-inducing numbers to reiterate the fact that they wouldn't be lowering rates any time soon. And even worse, would probably continue raising as long as the economy could continue to sustain the beating.

According to the CME watch tool, there will be a temporary pause this next meeting on Wednesday. Which could be considered somewhat neutral, but in reality is still negative, as maintaining interest rates at a high rate for longer will only cause more suffering to the average citizen and investor.

As far as this relates to the crypto market, it will also be a net negative. In the absence of any positive news as far as regulation and enforcement goes, low liquidity will continue. However, there is a light at the end of the tunnel.

Quality crypto projects that are getting brought down solely by the negative market environment will be ripe and ready for DCA at lower prices. While useless projects that were held up by nothing except for hype will start to die off. And ultimately, rates will begin to come down again, presenting institutions and high-capital investors incentives to invest more heavily into the crypto market.

​