Bitcoin strengthens during Asian session ahead of Federal Reserve decision; market divided on rate hike expectations

Source: Global Market Broadcast

Prior to the Federal Reserve's interest rate decision, which will be announced at 2:00 p.m. Eastern Time, bitcoin broke through $64,000 during Asian trading hours, rising by about 1% on the day. Ethereum increased by 1.7% to $1,909, and XRP led the major cryptocurrencies with a 2.6% gain.

The market generally expects the Federal Reserve to keep interest rates unchanged. According to CME data, about 70% of traders anticipate the Fed will hold steady for the sixth consecutive meeting, maintaining the benchmark rate in the 3.50% to 3.75% range. However, about 30% of market participants have priced in a 25 basis point rate hike, a possibility that has received significant institutional support. Citadel Securities told clients they expect a surprise rate hike this week to bolster Chairman Walsh’s credibility in fighting inflation; UBS also indicated it would not be surprised by such a move.