How Will FOMC Day Affect Bitcoin And Altcoins

The Federal Open Market Committee (FOMC) meeting is underway, with the U.S. Federal Reserve set to announce its next monetary policy decision at 2 PM ET on Wednesday.

According to data from CME FedWatch, traders expect the central bank to keep its federal funds target rate unchanged at 425 to 450 basis points.

However, Fed Chair Jerome Powells press conference could trigger significant volatility in the markets, potentially having a major impact on crypto investments.

Given the weak first-quarter U.S. GDP report, theres a strong likelihood that Powell will adopt a more dovish stance, offering potential relief for the crypto market.

Smart-money investors are already buying the dip, pushing Bitcoins price back to $97,000. Sidelined investors may have one last opportunity to stack up on the best cryptos to buy before the start of an explosive rally.

Wednesdays FOMC Could Trigger Significant Volatility In Crypto Prices

There is a growing consensus that Fed Chair Jerome powells post-FOMC speech could be bullish for financial markets.

The US Q1 GDP contracted by 0.3%, significantly worse than the market expectations of a 0.3% growth. The reading sparked significant recession concerns, considering two consecutive quarters of negative GDP meets the criteria of a technical recession.

The odds of a recession in the US economy in 2025 surged over 70% on predictions market like Kalshi and Polymarket.

Meanwhile, the economy received good news on the inflation front, with the Feds preferred indicator, core PCE, coming at 2.6% in line with market expectations.

Therefore, it won‘t be surprising if Powell adopts a dovish stance to give some much-needed respite to jittery investors, potentially indicating aggressive rate cuts this year or hinting at the start of the Fed’s Quantitative Easing.

As such, the CME FedWatch is indicating the possibility of three cuts this year. Moreover, the central bank continues to provide liquidity to markets through several non-QE measures. Just yesterday, the Fed purchased $20 billion worth of 3-year bonds, the largest single-day purchase in 2021.

It is not without any reason that the Bitcoin price successfully defended the $93,500 support level ahead of the FOMC, now bouncing to $97,000 at press time with climbing open interest.

Best Cryptos To Buy Now

Sidelined investors should quickly increasing their exposure to Bitcoin. There is a rapidly growing consensus that the Bitcoin price could climb to $150k in the second quarter itself. Several prominent analysts are now also hinting at the possibility of $210k this year.

Investors should also buy XRP, considering it is one of the strongest altcoins on the market. In particular, a decisive close above the $2.26, which could come quickly after Wednesdays FOMC, could trigger a rally to $3 in the short-term.

Among the meme coins, Popcat has emerged as an attractive investment, recording the highest investments from smart money wallets in the past 24 hours, data from Stalkchain reveals.

Investors should also keep an eye out on Fartcoin, owing to its relative strength. In particular, a daily close above $1.20 would pave the way for a rally to $2.

Smart money investors are also hunting for low-cap gems, especially in the AI sector. For instance, Mind of Pepe (MIND) has caught the attention of the whales ahead of its AI agent launch on May 10th.

Just last week, a whale swapped 70 ETH for MIND, adding to the list of its six-figure investments.

The Mind of Pepe presale has already raised over $8.8 million in short order, which indicates strong community support. However, it is also a small-cap AI coin, still in its presale, which makes it an attractive investment.

Prominent analysts and crypto influencers are calling it the next 100x crypto, while others are viewing it as one of the best cryptos to buy now.