FOMC Meeting Today: Fed Expected to Hike Rates 25 Bps – Will Bitcoin Drop Again?

Crypto markets are already under pressure ahead of today’s FOMC meeting, with Bitcoin trading below $75,000. The Fed is widely expected to raise rates by 25 basis points, a move that is mostly priced in. 

Now, traders are watching Chair Kevin Warsh’s comments for clues on future rate hikes and whether another wave of selling could hit Bitcoin.

Fed Expected to Raise Rates by 25 Basis Points

The Federal Open Market Committee (FOMC) will announce its decision at 2:00 PM EDT, followed by Fed Chair Kevin Warsh’s press conference at 2:30 PM EDT.

Markets are pricing in a 92.5% chance of a 25-basis-point hike, which would move the federal funds rate from 3.50%–3.75% to 3.75%–4.00%. This would be the Fed’s first rate hike in three years.

However, traders are already looking beyond today’s decision. They are watching Warsh’s comments for clues about future rate hikes. 

The markets have shifted from expecting two hikes to pricing in at least three by June 2027. 

Thus, former Fed Vice Chair Richard Clarida warned that another hike could follow.

“If we get a hike next week, certainly we’ll get additional ones. This is certainly not one and done.”

CLARITY Act Failure Adds More Pressure

The Fed’s decision comes as the crypto market deals with another setback. On September 15, the CLARITY Act failed to advance in the Senate, weakening a major regulatory catalyst for the market.