The price of bitcoin jumps as investors issued after a key meeting Fed – DL News

The Krupto and Capital markets jumped on Wednesday after the Federal Reserve decided to rate stable.

Investors married a sigh of relief after the US Central Bank remained on the course to become two interest rates.

This move was expected: Before announcement on Wednesday, investors put the chance to fall at about 1%, according to CME Fevatsch Tool.

Following the Feda Statement, Bitcoin increased by 1.3%, At 85,523 USD, in the middle of the afternoon trading, New York Time, and Etherum cut 0.8% to $ 2,043, according to Coingecko.

Forecasting

Despite this, the economic forecast of Feda for the United States was the drive as well as that Published projection more slow growth and growing inflation in the US.

The Committee of Federal Open Markets, or FOMC, revised growth projections by 2025. year down to 1.7%, of 2.1%.

And FOMC revised its inflation projections up to 2.8%, of 2.5% in December.

“Uncertainty about economic appearance increased,” Fomc said in the statement.

After a great extent, domesticating inflation from emergency consumption was taken during the co-fi-19 pandemic, Fed began to cut interest rates last year.

Investors in risk assets such as cryptocurrency and supplies seek lower prices because it means that the economy grows and more money will rotate from fixed assets such as bonds.

But President Donald Trump’s commitment to 25% tariffs on Canada and Mexico, two main trade partners, plus China and potentially European Union, clouded the picture.

“Everyone agrees that the flight against inflation stopped.”

– Economist Mohamed El-Erian

Tariffs tend to collect consumer prices and companies diminishing into the economy. And inflation remained stubbornly at about 3%.

This announced fears that the Fed commitment to interest rates will wave, and the supplies and crypto declined sharply as a result of this and other macroeconomic problems.

Bitcoin strayed in the potential bear marketWhile the rest of the crypt market crashed 20%, to $ 2.9 trump, because Trump attended function 20. January.

Traditional markets were also fried, and S & P 500 and Tech-Heavi NasdaDa100 pass on the territory of the correction in the last month.

2% Goal

Addressing a crowd on a digital digital work for BlockWorks, Economist Mohamed El-Erian said he recently increased his chances that the recession would hit in the US in one in ten chances for one in four.

“Everyone agrees that the flight against inflation stopped,” he said.

“If (Fed) was really seriously seriously serious in the purpose of inflation of 2%, the market would speculate when the next hiking is, not when the next incision is.”

Meanwhile, investors are divided into the outcome of Trump trade wars and cost reduction efforts, according to El-ERIAN.

On the one hand, some believe that they will release the private sector and tame national debt.

“Then there is another possibility, which is the possibility of Jimmy Carter,” he said, referring to the One-Joint President of the American President who lost the exuberment in 1980. years in the middle of inflation for the dissolution and economic of the Moribian economy.

“That policy pushes you into a stagflation that still exists.”

Relief

Despite this, all investors apparently wanted to see Wednesday was not surprised from Fed.

In the past minute, optimistic investors set up in class before FOMC’s statement in 14 hours of New York.

Bitcoin jumped 3.2%, and Etherum spread 8%.

The Great Winner was the CRIPTO CRIPTOCURRENCIJA bound to breaking 12% after the Securities Commission fell appeal against the company.

However, skeptics remained convinced that the rally will prove short-term.

“If Fed maintains a Hawkish apartment, a significant price recovery in the short term is unlikely,” James Butterper, Head of Research on the Cripto Research Firm CompoinsHares DL News This week.

So far, they still stood even. The question now faces investors that the economy absorbs the influence of the Trump Trading War is how long.

Alex Gilbert is a correspondent correspondent DL news based on New York. You can contact it at aleks@dlnews.com. Pedro Solimano is correspondent market based in Buenos Aires. You have the top? Send it by email at psolimano@dlnevs.com.