FED To Put Off Interest Rate Hikes, Bitcoin Rallies: Here’s Why
2023年2月2日 - 06:26AM
NEWSBTC
Bitcoin is shaking off sellers of January 30, price action on late
February 1 shows. The FED Raises Interest Rates The spark in BTC
demand is because of Federal Reserve (FED) Chair Jerome Powell’s
comments on the general economy and the central bank’s monetary
policy stance going forward. In recent months, Bitcoin and
crypto prices have been sensitive to inflation readings. News that
inflation fell in December 2022 triggered a bull run, with analysts
predicting the end of the FED’s hawkish regime in early February.
Related Reading: Why Ark Invest Believes Bitcoin Could Emerge As
Multi-Trillion Dollar Market Surprisingly, after the FED raised
rates, pushing the current fund rate to 4.75%, BTC and crypto
prices fell. It was until an hour later when Jerome Powell took to
the podium in a highly anticipated presser. Minutes after the
chair began speaking, BTC prices rallied from $22,780 to over
$23,500, adding about 3.5%. The chair’s comments on inflation and
labor expectations and the route the central bank plans to take in
the next few months triggered demand across the financial markets,
including Bitcoin. Related Reading: Bitcoin Monthly Signals
Stack Suggesting Bulls Are Ready To Stampede Most importantly,
Powell relayed what was mostly expected by traders and investors.
The chair confirmed that inflation has been improving, decreasing
in most core sectors, excluding housing. In December, when
inflation dropped to 6.5%, it was the sixth consecutive time the
critical metric has been tapering after peaking in mid-2022. While
dropping inflation is welcomed, the FED chair said the central bank
needs to see more evidence that the critical metric will continue
falling in months ahead. Since their intervention and hiking
interest rates seem to work, the central bank will maintain a
“restrictive stance for sometimes”. Monitoring Inflation
Nevertheless, the FED maintains that ongoing rate increases would
be appropriate to manage inflation. However, for inflation to fall,
the chair adds, the economy has to register below-trend growth
characterized by soft labor market conditions. Amid all this,
the FED will monitor inflation and “stay the course until the job
is done”. Reducing inflation is likely to require a period of
below-trend growth and softening labor market conditions. The
historical record cautions strongly against prematurely loosening
policy. We will stay the course until the job is done.
Deterioration of macroeconomic conditions wouldn’t be a concern for
the FED because their goal is to see “sustained changes to broader
financial conditions” in the long term. Feature image from Canva,
Chart from TradingView
TRON (COIN:TRXUSD)
過去 株価チャート
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TRON (COIN:TRXUSD)
過去 株価チャート
から 12 2022 まで 12 2023