The crypto market is up slightly today, August 16, as traders await the release of the Federal Open Market Committee (FOMC) meeting, which will come out on August 19. Bitcoin (BTC) and Ethereum (ETH) are stuck at $63,000 and $1,800, respectively, while Ripple (XRP) is defending the support at $1.
What is Driving the Crypto Market Today?
Geopolitical tensions continue to move crypto prices today as traders remain hesitant and await to see whether the ongoing talks about the reopening of the Strait of Hormuz will bear fruit.
As CoinGape reported, the UAE has reportedly seized billions of assets belonging to Iran, including gold. The seizure comes as prediction markets show that there is only a 13% chance that the US and Iran will extend their ceasefire deal after it expires on August 20.
Besides the US and Iran, Ukraine has also launched a major drone attack in Moscow today, August 16, adding to the geopolitical risks that are facing the crypto market.
Monetary policy decisions are also moving the crypto market as traders await the release of the minutes of the FOMC meeting that occurred in July.
As CoinGape earlier reported, that FOMC meeting had a hawkish tone despite the Federal Reserve leaving interest rates unchanged at between 3.50% and 3.75%. The Fed Chair, Kevin Warsh, opined that inflation remains a concern.
The minutes could affect the odds of the Fed hiking interest rates in September. Currently, prediction markets show that there is a 26% chance that the Fed will not hike or trim rates at that September meeting.
The crypto market today is also awaiting the upcoming meeting of President Trump with crypto executives on August 19. Crypto traders are also pricing in the outcome of that meeting on prices.
