2021-3-18 16:37 |
After a red start of the week, the price of Bitcoin made its way to $59,475 on Wednesday and currently trades around $58k.
The upward push in the prices came following Federal Reserve chairman Jerome Powell’s dovish remarks that sent the stock market higher.
S&P 500 hit a new all-time high at about 3,980. Tech-heavy Nasdaq also went up but is still 4.2% away from its peak from early February.
As we reported, since last month, Bitcoin has been moving in line with the stock market, and this time as well, the cryptocurrency did the same by reacting positively to Powell projecting a strong economy and that despite this, interest rates will be kept near-zero at least through 2023.
“The market climbed over its latest wall of worry and shifted focus away from long rates, as the Fed is fine with inflation running hot and is committed to keeping short rates at zero until late 2023 (or beyond),” noted trader and economist Alex Kruger.
Ahead of the announcement, Treasury yields surged, which they have been ever since late last year, challenging some of the strong drivers of funds into equities and other risk assets, including Bitcoin.
“The strong bulk of the committee is not showing a rate increase during this forecast period,” Powell told a virtual press conference Wednesday following a meeting of the Federal Open Market Committee (FOMC), further adding that the time to talk about reducing the central bank’s asset purchases was “not yet.”
Still, market attention shifted back to rates overnight, and if the traditional market fades, that would weigh on crypto as well.
Assets Are Good To Go UpIn its policy statement, FOMC said indicators of employment and economic activity have turned up while the sectors most adversely affected are still mainly weak and “Inflation continues to run below 2%.”
The Fed expects a bump in inflation to 2.4% this year but only to be short-lived and fall back to 2% in 2022.
“The FOMC sharply upgraded its economic outlook, to 6.5% GDP growth for 2021 versus its December forecast of 4.2%. Some were concerned this would accelerate tightening of monetary policy. To what the Fed replied, no tightening anytime soon,” said Kruger.
Fed’s reinstated dovish tone also helped push the US dollar down to 91.3 level from this week’s high above 92, but this was monetary as the greenback is back at 91.75 today.
As such, Bitcoin fell under $58k and Ether under $1,800.
ETH 2.60%
Ethereum / USD
ETHUSD
$ 1,823.31
$47.41
2.60%
Volume 24.09 b
Change $47.41
Open $1,823.31
Circulating 115.1 m
Market Cap 209.87 b
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Still, this may not be the top of the market yet as we continue to see more and more institutions and banks launching cryptocurrency services. Not to mention, the influx of retail is also strong.
Additionally, “Long term relative strength index on investment activity seen on the blockchain showing it's not overheated on fundamentals,” said on-chain analyst Willy Woo.
Bitcoin/USD BTCUSD 59,547.6895 $5,043.69 8.47% Volume 58.6 b Change $5,043.69 Open$59,547.6895 Circulating 18.66 m Market Cap 1.11 t baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=BTC&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD"); The post Federal Reserve Chairman Jerome Powell Gives Risky Assets The Green Light to Continue Higher first appeared on BitcoinExchangeGuide.Similar to Notcoin - Blum - Airdrops In 2024
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