Crypto Traders Brace for Impact Ahead of Emergency FED Meeting

James Bull, a passionate advocate for the metaverse, recently tweeted that the conclusion of an emergency FED meeting set for Monday, March 13, 2023, might significantly impact the cryptocurrency market coming weeks. As a preventative measure to prevent other banks from dealing with the same challenges as Silicon Valley Bank, Bull speculates that monetary policymakers may decide to decrease interest rates.

Bull also mentioned the possibility of publishing consumer price index data after the FED’s extraordinary meeting. If the actual CPI number is greater than the estimate, Bull predicts that it will cause a price pump in the market, while a price dump may be expected if the actual CPI figure is lower than the projection.

Fed policymaking meeting

The emergency session of the Federal Reserve Board of Governors has been scheduled on March 13, 2023, at 11:30 a.m. The policymaking body intended to “Evaluate and determine by the Board of Governors the advance and discount rates to be levied by the Federal Reserve Banks.”

The rapid failure of Silicon Valley Bank (SIVB), whose assets were confiscated by the Federal Deposit Insurance Corporation, has led the public to believe that the financial authorities prearranged the emergency meeting.

Biggest bank collapse since 2008

The demise of the SIVB is exceptional and ranks as the second-largest bank failure in the annals of banking history in the United States. The most significant collapse of a financial institution has occurred since the terrible economic crisis of 2008.

Since SIVB crashed on a Friday, the banking industry has been in a state of panic throughout the weekend. As we enter a new week, the industry still needs to learn how much harm was done since the fate of billions of dollars in uninsured deposits is unclear.

A week before its regularly planned meeting on March 21-22, 2023, the FED declared an emergency meeting due to heightened market anxiety. Investors are keeping a close eye on the economy, so future events like the FED meeting, CPI numbers, the UK budget, and the conclusion of the ECB meeting will likely affect the market.

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