- The FOMC’s rate decision draws criticism; Peter Schiff and David Solomon predict ‘no cuts’ soon.
- The crypto market is facing a downturn: resilience is observed, with a focus on long-term strategies.
Amid concerns about rising inflation in the US, the Federal Reserve has decided to leave interest rates unchanged.
Minutes The meeting of the Federal Open Market Committee (FOMC) showed policymakers’ concerns about a rate cut.
The minutes highlighted the fact that despite some progress, inflation has remained above the FOMC’s 2% target, with many consumer sentiment surveys showing growing concerns about future inflation.
The FOMC’s decision has been criticized
Criticism of the decision Peter SchiffCEO and Chief Global Strategist of Euro Pacific Capital, noted in an X (formerly Twitter) post:
Source: Peter Schiff/X
Participating in a similar line of thought, David Solomon, CEO of Goldman Sachs Group Inc., stated at an event at Boston College that he was currently predicting “zero” interest rate cuts. He said,
“I still don’t see the data that’s conclusive to see that we’re going to lower rates here.”
Negative impact on the crypto market
Needless to say, experts began to question the impact of the FOMC’s decision on overall market conditions.
The impact was noticeably negative, as evidenced by its direct effect on leading cryptocurrencies.
On May 22, Bitcoin [BTC] fell below the $70,000 mark, and Ethereum [ETH]which had recently risen from $3,064 to $3,790 also turned red.
In fact, at the time of writing, most top coins were showing red bars on the daily charts.
Positive sentiments persist
Despite the bleeding of the crypto market, @cryptosanthoshKa Crypto & DeFi analyst, noted:
Source: Crypto King/X
Ali Martinezthe technical and on-chain analyst, echoed a similar sentiment, saying:
Source: Ali/X
from Glassnode The Bitcoin Vibrance metric further confirmed this, showing an increase in coin creation versus destruction, indicating a shift towards long-term holdings over profit-taking.
Source: Glassnode
Satoshi Flipper, an investor/trader, expected ETH to experience a significant price increase due to anticipation of the approval of an exchange-traded fund (ETF):
“$ETH will deliver an epic ETF pump this week. Market prices cannot remain irrational forever.”
The stock market fell
Despite the prevailing positive sentiment around cryptocurrencies, attention should also be paid to the performance of the stock market, which saw a decline on May 22.
The Dow Jones Industrial Average fell 201.95 points, or 0.51%, to close at 39,671.04, marking the worst session of the month.
Similarly, the S&P 500 fell 0.27% to 5,307.01, while the Nasdaq Composite, which focused on technology stocks, lost 0.18% to end at 16,801.54.