Traders are wondering what will happen to cryptocurrency prices in the aftermath of the US Federal Reserve’s latest interest rate decision.
Bitcoin and Ethereum are both trading just under $29,000 and $1,900, respectively, after the Fed raised interest rates by 25 basis points to 5.0-5.25% on Wednesday.
The market had widely anticipated the rate hike, which explains the lack of reaction, though sentiment in the crypto space arguably received a modest boost after the Fed softened its guidance by removing a reference to the need for further tightening.
This has contributed to expectations that the Fed’s interest rate hike on Wednesday was the last of this tightening cycle.
Markets are increasingly betting on interest rate cuts in the second half of 2023 as US data continues to point to an economic slowdown (notably, job openings tanked once again) and as bank crisis concerns bubble, with more regional US banks seemingly on the verge of failing.
The money market-implied probability that interest rates will be cut by at least 100 basis points from current levels by December is currently around 68%, according to the CME’s Fed Watch Tool.
That money market implied probability was under 20% prior to Wednesday’s Fed meeting.
What’s Next for Crypto Prices?
Though crypto prices are currently locked within recent ranges, analysts predict that prices are about to explode higher.
Bets on the Fed easing policy (lower interest rates and increased liquidity) have historically boosted crypto prices.
Both Bitcoin and Ether are currently consolidating within pennant structures that have formed in recent weeks.
If these near-term trading patterns break to the upside, Bitcoin could quickly return to recent highs in the $31,000 range, and Ethereum could return to recent highs in the $2,100s.
yPredict Tool Makes AI Price Predictions Easy
However, even with years of experience in understanding macroeconomics, crypto fundamentals, and technical analysis, predicting price movements in the cryptocurrency market is difficult.
Artificial Intelligence (AI) technology, which has made significant strides in recent months, can assist.
AI models can analyze massive amounts of price data to identify trends that the human eye would have missed.
Good models can provide traders with a significant market advantage.
It is hardly surprising, then, that yPredict, a new crypto start-up building a revolutionary new AI-powered trading signals platform, has been generating massive hype in the crypto space.
yPredict’s in-development platform intends to provide market participants with a “unbeatable edge” by utilizing cutting-edge predictive models and data insights developed by top 1% AI developers and quants.
Users will be able to access AI trading signals, real-time social and news sentiment analysis, AI technical analysis, and AI-powered chart pattern recognition through the platform.
yPredict is conducting an already hugely popular presale of the YPRED crypto token that will be used to power its platform to fund the development of its exciting platform.
The presale, which is already in its fourth stage, has raised a whopping $500,000 in just a few weeks.
Interest investors should act quickly to secure tokens while they are still inexpensive at $0.05 per token.
When the presale progresses to the next stage, the price will rise by 28.5% to $0.07, with the YPRED token set to list on major crypto exchanges later this year at $0.12.
That means early investors will be sitting on paper gains of around 140% when YPRED ICOs.