One Biggest Takeaway from Fed Meeting: There is no Bitcoin Bubble

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Bitcoin closed above $20,000 on Wednesday for the first time in its lifetime, just as the Federal Reserve decided to preserve its dovish agenda for the coming years. Again, the two events validated the cryptocurrency’s growing dependence on macroeconomic conditions to decide its market bias. Fed Influence on Bitcoin The BTC/USD exchange rate rose to $20,000 ahead of the Fed meeting’s conclusion, pointing to traders’ anticipation that the central bank would extend its asset purchasing program in a near-zero lending rate environment. The pair later extended its rally to well beyond $22,000 after their expectations came true. Fed Chairman Jerome Powell held from boosting their bond-purchasing program but introduced guidance to keep it intact for a longer timeframe. He noted that the Federal Open Market Committee would continue to purchase $120 billion worth of debt every month until it achieves maximum employment and sustainable inflation above 2 percent. Mr. Powell…

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