This day, however, it falls 0.4% to u$s22,892.03, while Ehereum rises 0.2% to u$s1635.5. The other altcoins that at the beginning of the day registered gains began to fall very slightly.
Crypto’s reaction to the Fed
“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 held onto those gains in choppier trading quite impressively.”
And yesterday’s meeting of the Federal Reserve not only did not change 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 commodity prices so far,” the Fed chair said. 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.
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
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