Bitcoin (BTC) and the rest of the cryptocurrency market were very volatile during the last day, and everything has to do with the new decision of the American Central Bank on interest rates. After three consecutive type cuts, the bank believes that it is already enough. Interest rates remained plans and, at the press conference, he adopted a clear position.
Bad news, but bitcoin increases sharply
In the News on cryptocurrenciesThey will have already read that the political leaders of the Federal Reserve (Banque Centrale des United States) have set the brake on interest rates, was announced at 8:00 p.m. Obviously, the market had preferred to wait for another decrease in interest rates, but in reality, it was quite sure that the brakes would continue.
A decrease in interest rates reduces loans and, therefore, increases liquidity on the market. In addition, lower interest rates make traditional investments in bonds and economies less attractive, which can push capital to alternative assets such as bitcoin and other cryptocurrencies.
Due to disappointing inflation data and the labor market force, the Fed has communicated that this year, it would adopt a much more softened approach in terms of interest. Political leaders even thought that there would be only one type of type in 2025, according to the minutes of the previous meeting on interest rates.
A pessimistic panorama, but yesterday Powell managed to reassure investors again. “We see that the economy is growing towards 2%inflation,” he said. But politicians want to see more advances before daring another interest rate drop. At least now, it is not in a hurry to do so, because the labor market is still in good shape.
The market reacted positively to Powell’s words. He Bitcoin price He made a big jump of $ 101,500 to exceed $ 105,000, which represents an increase of more than 3%. The main altcoins such as Ethereum (ETH), Ripple (XRP) and Solana (soil) have also increased their value by several percentage points.
Investors expect the following cuts
It is not clear when the next drop in interest rate will occur. It seems that it takes a while, but it depends on the published economic data. Investors expect the labor market to cool down slightly and inflation will continue to drop, which would create a margin for new stimuli to the economy.