Bitcoin is at $24,000 after the Fed decision
The much awaited FED decision has come. Bitcoin climbed above the $24,000 level. The most anticipated event of the week and even the last period took place and the FED increased the policy rate by 25 basis points as expected.
Bitcoin, which gave a limited positive reaction at the first moment the decision was announced, increased its speed and started to rise from the moment FED Chairman Powell started to speak. Powell gave messages stating that they have come a long way but still have a long way to go, that they do not foresee a rate cut this year and that the interest rate may rise higher than the market expects.
Bitcoin is at $24,000 after the Fed decision
These sentences did not have a hawkish effect, as they were familiar-sounding signals that the market had heard before. In the continuation of the speech, the fact that Powell drew attention to the decrease in inflation many times and said that "disinflation has begun" was perceived as a pigeon by the markets. This message shows that the FED saw and accepted the downward trend in inflation. Stating that they will be able to reduce inflation to 2% without a major contraction in the economy, Powell's messages on the fight against inflation were perceived as dovish by the market.
Yesterday's summary, the policy rate has now been increased to between 425 - 450 basis points and it is possible to increase 25 basis points twice during the year. The reaction of the market, which expected a more hawkish speech in general, to these moderate messages was positive. Post-FED stocks and cryptocurrencies rose. While US indices rose between 1% and 2%, Bitcoin saw $24,000 and Ethereum $1700. Dollar and bond yields were withdrawn. Positive movements were seen in altcoins as Bitcoin dominance fell. The total value of the cryptocurrency market has risen to $1.1 trillion. Daily volumes, on the other hand, increased by $65 billion.
