How will the upcoming FOMC meeting affect Shiba Inu owners?

The upcoming FOMC meeting may affect the portfolios of investors holding Shiba Inu.

The FOMC meeting is held every three weeks, and one of the highlights of the meeting is the increase in the Fed rate.

The Connection Between the FOMC Meeting and Inu Shiba Prices

The FED has used interest rates as a tool for balancing the economy. The rate is lower than general loans. The lower rates make it easier for people to access investments.

On the other hand, if the maximum interest rate increases, investors will be less interested in borrowing and therefore will not make investments.

Interest rates are open throughout 2022, one of the Fed’s tighter monetary policies to control inflation.

The Shiba Inu and crypto markets recovered after the last FOMC meeting, when the Fed raised interest rates by only 0.5%, less than the 0.75% increase last month.

A lower interest rate hike is a sign that the FED is easing monetary policy. The next FOMC meeting will be held between January 31 and February 1.

How will the next interest rate rise affect Shiba Inu prices?

It is expected that the next FED rate hike will be around 0.25% and, if true, it will lead to a recovery in the crypto market as after the previous meeting.

As a result of the latest FOMC meeting, the Shiba Inu crossed the key resistance at $0.0000123.

But if the rate increase is bigger than expected, investors can sell SHIB again.

How is the market reacting now?

Sometimes the market reacts even before the FOMC minutes are released, and some speculate that this is because privileged people can hear the news of the meeting before it is officially released.

And when the official information is released, it will allow us to be more likely to trend the price direction. Allowing investors to look for opportunities to make short term profits.

but for now The best strategy is to wait and see where the market will go.

Source: Ambcrypto

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