Key Notes
- Crypto investors have been accumulating Tether’s digital gold.
- The FOMC meeting and big tech earnings are scheduled for this week.
- Some leading cryptocurrencies and tech stocks are recording gains ahead of key macro and micro events.
Financial markets are up as the first U.S. Federal Open Market Committee meeting of the year gets underway on Jan. 27 and 28.
Investors are also closely watching multiple earnings reports from major tech companies.
The Fed’s interest rate decision, which is widely expected to remain unchanged, is likely to have a notable impact on financial markets, including cryptocurrencies, according to Yahoo Finance.
Interest rates affect borrowing costs for both companies and consumers. If the Fed signals lower rates, which can be seen as a form of economic support, volatile assets are likely to rise.
On the other hand, keeping the rates steady would pressure the markets to remain in the bearish consolidation zone due to the broader macro uncertainty.
For example, US President Donald Trump’s tariff threats triggered a trade deal between the EU and India, BBC reported on Tuesday, Jan. 27.
The Big Tech Effect
In addition to the Fed’s rate decision, financial market participants are also waiting for the earnings reports of Microsoft, Meta and Tesla, which are expected to be published on Jan. 28.
Apple will post results a day later, according to Yahoo Finance.
While Apple, Meta, and Microsoft saw gains of 2.97%, 2.06%, and 0.93% over 24 hours, respectively, Tesla fell 3.09%.
Strong earnings reports from the tech giants will likely push their stocks higher. They could also impact the crypto market since digital assets usually move in the same direction as volatile tech stocks.
Diving Head-First Into Digital Gold
Gold has rallied past the $5,000 mark per ounce on Jan. 25, due to the increasing macro tensions between the US and the EU.
With gold’s rise, many crypto whales have started accumulating Tether Gold (XAUT) and Pax Gold (PAXG), according to data from Lookonchain.
The X post shows that three wallets withdrew a combined $14.33 million in XAUT and PAXG tokens from leading crypto exchanges Bybit, Gate and MEXC.
Both XAUT and PAXG recorded new all-time high market caps of $2.45 billion and $2.08 billion on Jan. 26, respectively.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
Wahid Pessarlay on X
Source: https://www.coinspeaker.com/crypto-whales-flock-to-digital-gold-ahead-of-fed-decision-and-big-tech-earnings/
