Bitcoin crashes when the Fed plans for interest rate increase confirmed
Bitcoin crashes when the Fed plans for interest rate increase confirmed
- The chairman of the US Federal Reserve confirmed that interest rate plans come into play in March.
- Both the cryptoma markets and the shares reacted with a break-in token prices.
- At the time of writing this article, Bitcoin fell by 3.15 % and Ethereum by 5.25 %.
After a two-day meeting of the Federal Open Market Committee (FOMC), which came to an end on Wednesday, the chairman of the US Federal Reserve, Jerome Powell, A press conference to talk about the country's monetary policy plans. Powell said the Fed would hire the purchases of assets by March and have also retained plans for interest rate increase.
In the run -up to yesterday's press conference, the markets were Bullisch and looked optimistic. In fact, the Bitcoin price rose a few minutes after the press conference began and reached a high of $ 38,740
Half an hour after the briefing began, the markets began to become red and have remained largely since then.
At the time of writing aggregator platform Coinmarketcap shows that btc over 3 % in the last 24 hours lost and is traded at $ 36,820. It is no different with Ethereum, since it is also in a downward trend and holds the price of $ 2,480, which corresponds to a decrease of 5.5 % that day.
Even shares that have shown a relatively high correlation factor with Bitcoin, rose and fell before and during the session.
plans of the hiked rate solved the break -in
The downturn in the markets caused the unveiling that the Fed will pick up the interest rates close to zero from March and introduce newer raised interest rates to combat the increasing level of inflation.
" I would say that the committee intends to raise the Federal Funds Rate at the March session, provided that the conditions are appropriate for said Powell.
The announcement, however, was nothing new because the Fed had already published the Tafering plan-to finish the purchase of assets and the decision on interest rates.
At the moment, inflation is moving well above the 2%goal of the Fed. Therefore, the central bank expects an increase in key interest rates to contribute to the fact that the currently high prices are not stuck.
Development of the Altcoin market
In addition to the market giant Ethereum and Bitcoin, the prices of old coins went back to the dollar after the Fed's announcement.
Solana sees the worst effects among the top 10 crypto-assets after market capitalization. According to data provided by coinmarketcap, Sol changes your hands at $ 92.6, which is 8.3 % Corresponds to 24 hours.
The recent failures of the blockchain do the network as a favor because it continues to swim in a Red Sea.
luna from Terra fell below the decisive mark of $ 60, and Matic from Polygon is traded under its price of 24 hours with $ 1.6 $ 2.7 %. Cardano (ADA) recorded a decline of about 5 % in the same period and hardly holds the support of $ 1.05 - it is traded at $ 1.07.
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Source: Coinlist.me
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