FED emergency meeting could set tone for crypto market direction with CoinEdition

• The emergency decision from the FED meeting may affect the direction of the market in the coming week.
• James Bull believes that the FED may lower interest rates to protect more banks from collapsing.
• Crypto prices may pump or dump depending on actual CPI numbers expected on Tuesday.

Metaverse enthusiast James Bull tweeted that the outcome of an emergency FED meeting scheduled for Monday, March 13, 2023, could significantly affect the crypto market in the coming week. Bull believes that the financial authorities can cut interest rates to protect banks from facing the kind of problems Silicon Valley Bank is facing.

Bull also noted the possibilities for another fundamental indicator, the CPI, to be released after the Fed’s emergency meeting. According to Bull, an actual CPI figure higher than the forecast will set off a price pump in the market, while prices will fall if the figure falls below expectations.

The Federal Reserve Board of Governors scheduled an emergency closed-door meeting at 11:30 a.m. on March 13, 2023. According to an announcement, the policymaking institution intended to “Review and determination by the Board of Directors of advance and discount rates to be charged by the Federal Reserve Banks.”

Prevailing public opinion suggests that the financial authority set the emergency meeting because of the sudden collapse of Silicon Valley Bank (SIVB) whose assets have been seized by the Federal Deposit Insurance Corporation (FDIC).

The SIVB collapse is unprecedented and represents the second largest bank failure in US history. It is the biggest bank failure since the infamous financial crisis of 2008.

SIVB went down last Friday, which sent the banking sector into a panic heading into the weekend. The full extent of the damage done to the industry has yet to be realized as the status of billions of dollars of uninsured deposits is unknown heading into the new week.

The FED scheduled the emergency meeting one week ahead of a meeting originally scheduled for March 21-22, 2023. Apart from the FED meeting and CPI numbers, other events expected to affect the market in the coming week include the UK budget and the outcome of the ECB Meeting.

The post Emergency FED Meeting Could Set Tone For Crypto Market Direction appeared first on Coin Edition.

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