Crypto Market Turns Green As FED Leaves Interest Rates Unchanged

By Sunil Sharma
December 16, 2021 Updated December 16, 2021
Best In

Earn

Telegram

Fed leaves interest rates unchanged
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.

 

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Next Story