Bitcoin has first recovered USD 98,000 for almost three months after the US Federal Reserve said that it would keep the interest rates for the next month.
The FED decision to maintain unchanged interest rates occurs despite the growing pressure on the part of the US President Donald Trump, who only threatened only a few weeks that he would dismiss the chairman of the FED, Jerome Powell for “too late” in terms of cutting rates.
The Fed quotes higher unemployment, risk of inflation
Powell he said On May 7, the Federal Reserve Determining Committee maintained rates of 4.25% to 4.50% due to the growing risk of higher unemployment and higher inflation.
He added that the inflation “dropped significantly, but it was exceeding our 2% longer goal.” Powell said that surveys in households and companies showed a “sharp drop in moods” mainly because of the fears of Trump’s trade policy.
However, Powell said that “despite increased uncertainty, the economy is still in a solid position.” In the days preceding the announcement data from the CME group Fedwatch tool He pointed out that the Futures contract market expected minimal chances to reduce the rate.
Powell said that the unemployment rate remains low and the labor market is “with maximum employment”. Market Expecting Fed, to drop FED funds up to 3.6% until the end of 2025.
Bitcoin (BTC) fell below USD 97,000 to USD 95,866 after Powell’s speech, but fired to exploit USD 98,000 for the first time from February 21 a few hours later.
Bitcoin Momentum is being built, and Crypto Fear & Greed Index has returned to the territory of “greed”, and the rotating funds (ETFS) in the amount of almost USD 4.41 billion from March 26.
Related: The bitcoin price increased by 1,550%, last time the “BTC risk risk rate” fell to this low level
On March 9, the Timothy Peterson network economist warned that if the Fed holds the rate reduction in 2025, this could cause a wider market crisis, potentially dragging Bitcoin back in the direction of USD 70,000.
Peterson’s forecast occurred after Powell said in March that “we don’t have to hurry and we are well prepared to wait for greater brightness.”
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This article does not contain investment advice or recommendations. Each investment and commercial movement involves risk, and readers should conduct their own research when making decisions.
