01/30 update below. This publication originally published on January 29
Bitcoin and crypto costs stabilized after being on the verge of fall yesterday, investors are still caught off guard by a flash sell-off that sparked fears of a “financial crisis. “
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Bitcoin’s value fell sharply towards $100,000 before recovering to around $102,000, Bitcoin and Crypto remain subdued despite BlackRock CEO Larry Fink revealing a Sovereign Wealth Fund bombshell.
Now, as Coinbase’s CEO now predicts when Bitcoin’s value may be in front of $18 billion worth of gold, Bitcoin and Crypto investors are ready for the Federal Reserve’s latest interest rate after U. S. President Donald Trump called it worth downplaying strongly.
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The market has a price in almost one hundred percent certainty that the Federal Open Market Committee of the Fed (FOMC) will maintain interest rates waiting, according to the Fedwatch tool of the CME group, after reducing the rates in each of each Your last 3 meetings.
“The existing pause of [Bitcoin Price] can be attributed to the aversion before the Fed meeting,” said Alex Kuptsikevich, a leading FXPro analyst, in a note sent by email.
Update 30/01: The Bitcoin Worth and the broader cryptography market rose after the Federal Reserve continued with its well -level break rate of falling interest rate yesterday, Bitcoin is worth exceeding $ 105,000.
Fed chair Jerome Powell’s dovish comments that indicated he expects inflation to continue to ease helped push bitcoin and crypto prices higher.
“Even with the United States Federal Reserve that continued a” wait and see “strategy on other reductions in interest rates, Bitcoin Bulls has little explanation why worrying,” said Neil Roarty, Crypto analyst -Monnie at ClickLed Media , in comments sent by email.
“The current 4.25% to 4.5% range is already proving low enough to sustain risk appetite, even if inflation is still higher than the Fed’s target. Bitcoin looks safe above the $100,000 watermark, and it could break higher over the coming months if Donald Trump pressures Jerome Powell into accelerating cuts, as he’s hinted he may. While bitcoin remains an attractive risk-on asset at current rates, a drop below 3% could flood markets with liquidity, further fueling speculation and pushing bitcoin into uncharted territory.”
Powell has also opened the door to banks to start serving cryptographic companies, provided they take appropriate precautions. “Banks are perfectly to serve cryptographic consumers as long as they can perceive and respond to risks,” Powell said at a press convention after the Fed rate decision.
Meanwhile, the president of the United States, Donald Trump, criticized the Fed and Powell, accusing them of not obtaining inflation and the low economy and pressing Powell to reduce interest rates through 2025.
“Because Jay Powell and Fed have not been able to prevent the challenge they have created with inflation, I will do it through US energy production, reducing regulations, through the rebalancing of the foreign industry and when manufacturing manufacturing American, however, I will do much more than the end of inflation, I will return to our country financially and, otherwise, it is difficult again, “Trump said about his social account of truth.
“The Fed has done a horrible task about banking regulation. The treasure will lead the effort to reduce regulation and lose loans for all Americans and companies. If the Fed had spent less time in Dei, gender ideology, energy,” Green “and the false climate change, inflation would never have been a problem.
The rate resolution will be published on Wednesday at 2 p. m. ET, followed through the major press conference led through Fed Chair Jerome Powell, in which reporters will press him for a reaction to Trump’s comments that interest rates are cut “a lot. “
“I think I know the interest rates much larger than them, and I think I know them much more than whoever is mainly guilty for making this decision,” Trump said last week.
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Last year, the republican candidate at that time, Trump, said that US presidents have their opinion on decisions made through the Fed, which increases the option that may lose their independence.
“We hope that [the president of the Fed Powell] be as diplomatic as possible, while committing a company to foster independence,” wrote Barclays Ajay Rajadhyaksha economist in a note noticed through axios.
“Now that Trump has called for a very vocal voice on lowering interest rates, if the Fed supports financial policy, it will give the impression that they have given up and lost their independence,” Isabella Weber, an economist at the University of Massachusetts Amherster, told the Financial Times.
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