At first monetary policy meeting this year, the Federal Open Market Committee (FOMC) of Federal Reserve signaled that new increases may come throughout 2023.
The interest rate increase was 0.25 percentage points, which was expected by the markets. The Fed said the ongoing increases will be appropriate to return inflation to the 2% range over time.
THE Bitcoin (BTC) and the crypto market as a whole, have moved forward. The largest cryptocurrency by market cap is up 1% and trades at $23,400, while the Ether (ETH) is up 1.5% to $1,620.
Bitcoin (BTC) Reverses Losses After Powell Speech
Bitcoin’s rise in January, the biggest since 2013, has put the asset in a delicate situation. Analysts agree that the $25K region is a strong resistance, and the buying force may be wearing off.
Central Bank Governor Jerome Powell calmed markets somewhat. The signal was that there will be more increases, but possibly in a milder way.
Powell signaled that a slower pace of monetary tightening would be positive for the Committee to be able to better assess the progress of the US economy towards the targets.
A slower rise may not be ideal – like a full stop – but it still buoys risk markets such as crypto assets.
Source: Moneytimes
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