TL;DR
The Fed simply introduced that they weren’t touching rates of interest within the US for now, leaving them unchanged at 5.25%-5.50%, which resulted in a small drop in worth for BTC, however the influence was small.
Full Story
There ya have it: the Fed simply introduced that they weren’t touching rates of interest within the US for now, leaving them unchanged at 5.25%-5.50%.
(Which implies folks received’t have extra money of their pockets to spend on risky-ish property like crypto).
The choice to carry rates of interest was broadly anticipated by analysts!
What wasn’t broadly anticipated, although, was that the Fed Chair, Jerome Powell, gave little-to-no indication {that a} September charge lower is occurring.
(One thing he most likely would have executed if this choice was teetering on the sting of a ‘sure, we’ll make he lower now’).
In consequence, the crypto markets dipped barely (with BTC ~2% down on the time of writing, in comparison with earlier than the Fed charge choice announcement).
However right here’s the excellent news:
Up to now, when rates of interest rose or stayed the identical (i.e. something moreover an rate of interest lower), the crypto markets dropped considerably.
Much less volatility associated to the information cycle reveals a maturing asset class.
(We like to see it).
And in different excellent news, earlier this week, Jerome Powell did say, and we quote – “inflation has eased considerably” – which sparked a small uptick within the worth of BTC.
Whether or not they maintain charges regular in September, or make their first lower since March 2020, is anybody’s guess at this level.
Quite a bit can occur in simply a few months!
