9 hours agoU.S. interest rates fall
Periskopi(7 months ago)
(7 months ago)The U.S. Federal Reserve announced another 25 points of basic interest rate. Although the lowest rates are usually seen as a positive development for the cryptoclean market, most soils have actually suffered considerable decline in appreciation since the announcement of the news. Since 11:30 in the morning [...]
Since 11:30 a.m. (in Eastern U.S. hour), Bitcoin has dropped about 4 percent during the last 24 hours of trading.
Why did a catalyst who seemed positive to the Kryptonan market cause a massive Bitcoin sale? And should investors worry that the main cryptoid can face a longer period of falling trade?
Investors in crypto notes have hoped that the Federal Reserve would continue to lower interest rates, and the Federal Open Market Committee (FOMC) realised this expectations yesterday. Although some in the market had hoped for a half-point drop, a quarter drop was generally expected. As a result, the decline in the value of Bitcoin and other cryptoids could be the result of the phenomenon known as “buys rumors, sells news” Other factors are likely to have influenced, reports yahoofinance, and the telegraph is transmitted.
In particular, the head of the Federal Reserve, Jerome Powell, said another reduction of interest rates in the next meeting is not safe. With the federal government currently closing (sutdown) due to lack of votes to increase the debt ceiling, Fed is functioning without some key data usually used to make decisions on interest rates.
The Federal Reserve began to raise interest rates in 2022 to combat rising inflation. Although inflation rates have remained above the annual target of 2 per cent targeted by the central bank, the recent weakening of the US labour market has moved Fed to change direction, moving to a policy of lowering rates. If FOMC members vote to keep interest rates at current levels at the next meeting, this could cause great pressure on the rating of Bitcoin and other crypto notes.
On the other hand, FOMC's vote on lowering the rate yesterday ended with 10 votes, and 2 against R) and one of the voters did so because it wanted a higher, half-point reduction. This may show there is solid support for further reductions in December, but the decision will depend greatly on future data on inflation and macroeconomic factors.
Despite some recent declines, Bitcoin's price is still about 15.4 percent higher in the 2025 trade until the article's writing. Even more impressive, krytomonde has grown by 696 percent over the past five years.
Although the krytomoned market has experienced severe fluctuations during this period, overall evaluation trends have been markedly positive.
This does not necessarily mean that Bitcoin and other cryptovaluts will continue to grow in the next five years, but market history shows that long-term investors should not react to a moderate decline related to recent news interest rates. /Periscope/
