TL;DR
The Fed simply introduced that they weren’t touching rates of interest within the US for now, leaving them unchanged at 5.25%-5.50%, which resulted in a small drop in worth for BTC, however the affect was small.
Full Story
There ya have it: the Fed simply introduced that they weren’t touching rates of interest within the US for now, leaving them unchanged at 5.25%-5.50%.
(Which implies folks received’t have more cash of their pockets to spend on risky-ish property like crypto).
The choice to carry rates of interest was extensively anticipated by analysts!
What wasn’t extensively anticipated, although, was that the Fed Chair, Jerome Powell, gave little-to-no indication {that a} September charge minimize is occurring.
(One thing he in all probability would have achieved if this determination was teetering on the sting of a ‘sure, we’ll make he minimize now’).
Consequently, the crypto markets dipped barely (with BTC ~2% down on the time of writing, in comparison with earlier than the Fed charge determination announcement).
However right here’s the excellent news:
Previously, when rates of interest rose or stayed the identical (i.e. something in addition to an rate of interest minimize), the crypto markets dropped considerably.
Much less volatility associated to the information cycle exhibits a maturing asset class.
(We like to see it).
And in different excellent news, earlier this week, Jerome Powell did say, and we quote – “inflation has eased considerably” – which sparked a small uptick within the worth of BTC.
Whether or not they maintain charges regular in September, or make their first minimize since March 2020, is anybody’s guess at this level.
So much can occur in simply a few months!
