
Bitcoin Breaks $23K Resistance After Fed Disinflation Announcement
• The US Federal Reserve announced the start of the disinflationary process of the US economy, raising the interest rate by 25 bps
• Following the announcement, Bitcoin rose 3.2% in the last 24 hours, breaking its $23k resistance level
• Federal Reserve chairman James Powell indicated that the Fed may be winding down its rate hikes due to the slowdown in inflation
The US Federal Reserve has recently announced the start of the disinflationary process of the US economy, raising the interest rate by another 25 base points. This acknowledgement has generated a positive response in the financial markets, leading to a rise in both crypto and stocks.
Following the announcement, Bitcoin rose 3.2% in the last 24 hours, breaking its $23k resistance level. This increase in value indicates the confidence that investors have in the cryptocurrency, as its price remains largely unaffected by the changes in the global economic landscape.
At a press conference, Federal Reserve chairman James Powell indicated that the Fed may be winding down its rate hikes due to the slowdown in inflation. He noted that the December Consumer Price Index report showed a downward trend in CPI since the Fed’s aggressive quantitative easing measures last year. However, at 6.5%, it is still higher than the central bank’s target inflation rate of 2%.
The market appears to be overly optimistic about the current situation. Despite the fact that the central bank is still not optimistic about their future moves this year, investors in both crypto and stocks remain confident about their investments. As a result, the NASDAQ has been climbing steadily despite the increase in interest rates.
It remains to be seen whether the current market sentiment will remain in the face of economic uncertainty. However, one thing is certain: investors should take the time to research their investments before making any decisions. With the right approach, investors can ensure that they are making the most of their investments in the current market environment.
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