0.1 C
Tuesday, March 28, 2023

Fed Effect: Bitcoin hits a 5-month high and approaches $24,000

Must read

- Advertisement -

“Bitcoin has benefited more than most from the increase in market optimism since the turn of the year,” he says. Craig Erlam, OANDA Market Analyst. “What’s more, he’s held onto those gains in choppier trade quite impressively.”

- Advertisement -

And yesterday’s meeting of the Federal Reserve not only has not changed the perspectives but seems to confirm them, given the expectations that the end of the path of monetary tightening is near.

On Wednesday the Federal Reserve raised rates 25 basis points, as the market had assumed. Next, the president of the institution, Jerome Powell, offered a press conference in which he left several messages, but the main one that the markets seem to cling to is his affirmation that the disinflationary process of the economy has begun.

“Now we can say, I think for the first time, that the disinflationary process has begun. We can see it and we really see it in the prices of goods so far”, said the president of the Fed. Of course, he added that it is premature to declare victory over inflation. In fact, the market expects at least two more rate hikes this year.

- Advertisement -

In the rest of the cryptocurrencies there is also euphoria. The 14% advance of Polygon, BNB (7%) and Cardano (6%) stands out.

Still, many experts remain unclear on how long, if at all, this rebound can be sustained, while others are more optimistic. “Historically, when interest rates rise moderately, average returns and bitcoin rise massively, more than traditional assets, as speculators quickly buy back as credit and money become more available.”, concluded CoinDesk expert Jodie Gunzberg.

Source: Ambito

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

- Advertisement -

Latest article