The Crypto Compass Issue #12

Hey There Friends!

We're back with another edition of your favorite crypto newsletter, filled with juicy updates and the latest happenings in the world of cryptocurrencies. Today, we have an exciting line-up for you, so let's dive right in!

1. Eyes on the Upcoming FOMC Meeting 🎯

It's that time again, folks! The Federal Open Market Committee (FOMC) is scheduled to have their meeting on 22nd March, and the world will be eagerly awaiting the outcome. As you may already know, the FOMC sets monetary policy for the United States, which often influences the global financial markets.

There's currently a 80+% probability (source: CME FedWatch Tool) that the FOMC will increase interest rates by 25 basis points (bps). On the other hand, they might also decide to keep rates unchanged at 0 bps. This decision will have a significant impact on the overall financial market, and you can bet that the crypto market will be affected too.

https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

An interest rate hike could lead to a stronger US dollar, which could, in turn, apply downward pressure on Bitcoin and other cryptocurrencies. However, we are also observing that there's a flight to safety to Gold, Silver and Bitcoin due to the banking crisis.

2. Bitcoin Narrative as Digital Gold 💰

While we're on the topic of Bitcoin, let's take a moment to appreciate the narrative of Bitcoin as "digital gold." It's a concept that has been gaining traction over the years, as more and more investors view Bitcoin as a store of value, similar to gold.

This narrative has played a key role in Bitcoin's mainstream adoption, as it provides a solid argument for its long-term potential. As the world becomes more digital, it only makes sense for people to look for digital assets that can store and preserve their wealth. Bitcoin fits the bill perfectly, given its scarcity and decentralized nature.

So, whether or not the FOMC's decision impacts Bitcoin's price in the short term, remember that the digital gold narrative is a long game. In the grand scheme of things, it's important to keep an eye on the bigger picture and the potential that cryptocurrencies have to revolutionize the financial world.

3. NFT Volume Drying Up? 🎨

Now, let's shift gears and talk about the world of non-fungible tokens (NFTs). We've witnessed some incredible NFT sales over the past few years, but it seems like the volume might be drying up a bit.

While it's true that the NFT market has cooled down somewhat compared to the frenzy we saw in 2021, this doesn't necessarily spell doom for the industry. Instead, it could signify a maturation of the market, as participants become more selective and discerning in their investments.

We believe that NFTs are here to stay, as they have proven their value in various industries, such as art, gaming, and collectibles. It's likely that we'll continue to see innovation and growth in the NFT space, albeit at a more sustainable pace.

That's it for this edition of our crypto newsletter! We hope you enjoyed the updates and insights, and as always, stay tuned for more exciting news in the world of cryptocurrencies.

To the moon! 🚀

Best, QH

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