Americas Crypto Daybook: Tron's Memecoins Surge as Bitcoin Awaits FOMC Decision

By Francisco Rodrigues (All times are in ET unless specified otherwise) Following Tuesday's downturn, cryptocurrency prices are experiencing a modest resurgence, with bitcoin (BTC) rising 0.5% to $86,817.46 and the CoinDesk 20 Index (CD20) advancing 0.8% over the last 24 hours. This recovery comes ahead of the Federal Reserve's policy announcement later today, where interest rates are expected to remain steady at 4.25%-4.5%. As a result, investors will be focused on the macro outlook, with a potential end to quantitative tightening (QT) on the horizon. Since mid-2022, the Fed has been gradually reducing its balance sheet, which expanded to $9 trillion to support the economy during the COVID-19 pandemic. An earlier-than-expected conclusion to quantitative tightening, which has reduced the Fed's balance sheet to $6.7 trillion so far, could provide a boost to risk assets like bitcoin. If QT were to end, the Fed would cease withdrawing liquidity from the market, potentially weakening the US dollar and making crypto assets more appealing. Traders on the prediction market Polymarket are almost certain that an end to QT will be announced before May. Additionally, the Bank of Japan (BOJ) decided to maintain its benchmark interest rate, despite growing inflation in the country. This decision keeps Japanese bond yields stable, limiting their attractiveness and drawing less capital to traditional markets. However, bitcoin failed to respond to this development. The recognition of bitcoin as an alternative store of value has been growing. According to data from River Strategy, the number of public companies purchasing bitcoin has more than doubled to 80 from 33 in just two years. The largest corporate holder of BTC has even outlined plans to sell $500 million in preferred stock to acquire more bitcoin. However, the threat of growing tariffs has reignited inflationary risks as economic growth stagnates. This could lead to stagflation, a scenario that would not be favorable for market participants. It is essential to remain vigilant. Key Events to Watch: Upcoming Token Events Conferences Token Talk By Shaurya Malwa Derivatives Positioning Market Trends: Bitcoin Statistics: Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs: Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether