News and analysis on encrypted currencies, Blockchain and decentralized financing

yesterday , feeding She announced that she had not cut off Useful interest rates because Inflation is still high.

However, the Bitcoin price The matter ended in interaction with a height, in part due to what President Powell said yesterday at the press conference.

Fed: Inflazione Ancora Elevata in the United States of America

Delay Data Available, those related to December, indicate High inflation in the United States Compared to the previous three months.

However, the feeding Firstly, basic inflation data is used to make its decisions, instead of very volatile general inflation data.

In December, the basic inflation in the United States decreased to 3.2 %, but it is still above The goal is the Federal Reserve.

In fact, the reduction compared to the previous months was small, because from September to November, it was fixed by 3.3 %, while in July and August already 3.2 %.

In fact, six months have passed since the basic inflation in the United States of America has stopped, and this is somewhat related to the Federal Reserve regarding the path taken to return it to 2 %.

Reducing the Federal Reserve rate

The peak of the last years of interest rates at the Federal Reserve was hit in July last year, when it rose to 5.5 %.

Since then, they have been at this level in particular, until September, when the Federal Reserve has reduced it by 50 basis points, and raised them to 5 %.

At this point, the course of a decrease in the rate appears to have been implemented, however, it has now stopped after the last reduction in December, which raised it to 4.5 %.

At this moment, the markets are betting that even in March, the Federal Reserve will leave the discounts unchanged (in February, FOMC, who decides the rates, will not meet).

Until the first half of December, there were other possible discounts to raise rates of at least 4 % in relatively short times. Instead, from today, it is assumed that it can reach only 4 % at the end of the year, either with the FOMC meeting at the end of October, or even with December.

What the Federal Reserve said yesterday with regard to rates and inflation

The official statement that accompanied the news of the missing pieces yesterday is a little afraid of the markets, because it no longer contains clear references to the path of reducing inflation, which were present in previous similar data.

However, later, during the usual press conference, the President Jerome Powell The toning of the speech, effectively describes the position that is very good, albeit with light and shadow is clear.

Powell repeated that the economy of the United States of America is still strong, as the growth of GDP will exceed 2 % in 2024.

He also mentioned that the conditions of the labor market are largely stable, despite the high interest rates, especially as unemployment is low, in relation to what has happened in recent years.

However, he often mentioned the word “uncertainty” to indicate that the central bank does not actually follow a pre -specific path regarding price discounts, and that each decision takes a case according to the case depending on the new data that appears continuously, which, in Reality, cannot be predicted.

Impact on Bitcoin price (BTC)

In fact, it was a neutral decision and a press conference, to the extent that the reaction of the financial markets was cautious.

However, in response to the last question in the press conference, Powell stated explicitly, especially since American banks should not have organizational issues in providing encryption services to citizens, if they do so in accordance with the law.

Powell never spoke about it clearly in public places, to the extent that his words were interpreted by the encryption markets as a kind of change in the direction. On the other hand, the new Trump administration strongly supports EncryptionTherefore, even federal reserves now have less concerns about declaring itself favorable in some way.

And so the price Bitcoin At the end of the press conference, it rose from 103,000 dollars to $ 104,000, while it also rose to 105,000 dollars.

Given that the financial markets were their reaction in a largely neutral way with yesterday’s events, it seems that this rise in the price of bitcoin has arisen due to this recent response that Powell presented at the press conference.

So, on the one hand, the monetary policy of the Federal Reserve will remain restricted for a long time, with a negative impact on the American financial markets that have already been largely priced, things can change for Bitcoin and the encryption sector, because this month of January 2025 may already be opened A new era thanks to the new American policies. It is also possible that this elegant change was not fully priced by the markets.