Crypto Market Turns Green As FED Leaves Interest Rates Unchanged
In a much awaited meeting involving highest level policy makers, the FED today announced to keep interest rates unchanged and accelerate the tapering. Reacting to the news crypto market has already made a healthy jump with large cap cryptocurrencies up by almost 4% at the time of writing.
Most cryptocurrencies including Bitcoin were down by more than 25% on their MOM charts prior to the news. The speculations over a blow off top has spread fear among investors & fear-greed index touched extreme fair with reading of 16 on Dec. 11th, 2021. As predicted by CoinGape, bitcoin price action signaled a 5% move to $50k which seems to be in action now.
As for retail investors, the current news from FED seems to have doubts over macro economic policy changes affecting crypto and we may see its effect on crypto prices in next few hours.
What This Announcements Means for Global Market?
As reported by Aljazeera, this announcement is based on assumption that economy is making good progress and jobs market is recovering well. Powell said that,
Current unemployment rate of 5.9 percent understates the true scale of joblessness because the number of Americans either working or actively looking for work remains low.
He also mentioned that Central Bank is ready reconsider current monetary policies if an inflationary risk emerges to economic recovery. As per the report,
Fed policymakers are of the view that the uptick in inflation is a consequence of supply bottlenecks forming as businesses reopen all at once, and will likely prove temporary.
In summary, this decision is based on assumption that high inflation rate is not a worry as of now and that economic growth will slowly catch up. This decision is expected to boost investor confidence and we may see relief across stocks & crypto prices.
- U.S. Treasury To Ease Tax Rule on Unrealized Bitcoin Gains, Aiding Saylor’s Strategy
- Trump-Backed World Liberty (WLFI) Plans RWA Tokenization Paired with USD1 Stablecoin
- Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms
- Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder
- BREAKING: Nasdaq Files with US SEC to List BlackRock Bitcoin Premium Income ETF
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
