This week, the Bitcoin and altcoin world is on high alert as the three major central banks are set to announce their key interest rate decisions. The Bank of Japan (BOJ), the US Federal Reserve (FED), and the Bank of England (BOE) are holding policy meetings, with analysts expecting different results from each.
BOJ, FED, and BOE to announce decisions
The Bank of Japan (BOJ) will be the first institution in Japan to announce its decision, expected on Wednesday morning (Tuesday evening in the US). Analysts are divided on whether the BOJ will raise its policy rate from its current 0%-0.1% range or signal that a rate hike is imminent. Inflation in Japan has been running above the bank’s 2% target for some time, and despite the recent rally, the yen is hovering near decade-lows against the US dollar. According to The Wall Street Journal, the BOJ believes that tighter monetary policy could revive Japan’s sluggish consumption. Higher rates could strengthen the yen, lowering the cost of key imports such as gasoline and food, thus easing inflationary pressures.
The focus will then turn to the Fed, which will make a statement on Wednesday. The Fed will announce its decision at 9:00 p.m. Turkish time, followed by Fed Chair Powell’s comments at 9:30 p.m. The Fed is not expected to cut interest rates, but the vast majority of analysts expect the Fed to signal a rate cut at its next meeting in mid-September. Market expectations are calling for a 100% chance of a rate cut in September, according to the CME FedWatch tool, but there is a 12% chance that the cut will be 50 basis points instead of the traditional 25 basis points.
Finally, the Bank of England is set to announce its policy decision on Thursday afternoon. Economists and market participants are almost evenly split on whether the BOE will cut interest rates for the first time in a long time. Even if the BOE cuts interest rates, it is expected to take a cautious stance, warning markets not to expect a series of rate cuts.
What is the latest situation in Bitcoin and altcoins?
There are also active moments in the cryptocurrency market this week. Bitcoin (BTC) managed to maintain the $66,000 level after briefly falling to the $65,000 level. Ethereum (ETH) displayed a sluggish performance and was trading at $3.3,000 today. However, XRP defied the general market trend and made unprecedented gains. Bitcoin was trading at $66,072.70, down 0.74% as of press time. Its lowest and highest values in the last 24 hours were recorded as $65,323.19 and $66,987.67, respectively. Despite the intense BTC purchases by whales, the token failed to gain upward momentum. At the same time, Bitcoin ETFs recorded an outflow of $18.3 million, in line with BTC’s current price action.
Ethereum is down 0.86% in the last 24 hours to $3,293.36. The coin’s lowest and highest values in the last 24 hours were recorded as $3,235.76 and $3,365.32, respectively. The coin has been showing a rather sluggish performance despite the ETF launch. Solana (SOL) lost 0.88% in line with the general market trend, with the SOL price trading at $180.92. The coin’s lowest and highest values in the last 24 hours were recorded as $176.02 and $184.18, respectively. Ripple Labs-backed XRP, on the other hand, increased by an extraordinary 8.04% to $0.6492. XRP’s lowest and highest values in the last 24 hours were recorded as $0.5973 and $0.6579, respectively. Today, XRP stood out as the biggest gainer. Stellar (XLM) rose 5.92% to $0.1054, Kaspa (KAS) rose 2.69% to $0.1965, and Aave (AAVE) rose 2.43% to $106.88.
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