01/30 Update below. This message was initially published on January 29
The prices of bitcoin and cryptography stabilized after hanging on the edge of another fall yesterday, traders are still in shock from a sudden sale which aroused fears of a “financial crisis”.
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The price of Bitcoin fell sharply to $ 100,000 before rebounding at around $ 102,000, although Bitcoin and Crypto remain moderate despite the director general of BlackRock, Larry Fink, revealing a bomb of the sovereign fund.
Now, as the CEO of Coinbase now predicts when the price of bitcoin could reverse the 18 billions of dollars of Gold, the traders of Bitcoin and Crypto are prepared for the last interest rate of the federal reserve after the US President Donald Trump called on prices to decrease strongly.
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The market is price of a certainty of almost 100% that the Federal Open Market Committee of the Fed (FOMC) will hold the pending interest rates, according to the Fedwatch tool of the CME group, after having reduced the rate at each of its last three meetings.
“The current lull (Bitcoin Prize) can be awarded to risk aversion before the Fed meeting,” said Alex Kuptsikevich, chief analyst of the FXPRO, in a note sent by e-mail.
01/30 update: the Bitcoin price and the wider cryptography market climbed after the federal reserve followed with its well -telegraphed break of interest rate drops yesterday, the Bitcoin price exceeding $ 105,000.
The dominant comments of the president of the Fed, Jerome Powell, indicating that he expects inflation to continue to facilitate ease with the prices of bitcoin and cryptography.
“Even with the American federal reserve which was pursuing a” wait and see “strategy of new interest rate reductions, Bitcoin Bulls have little reason to worry,” said Neil Roarty, crypto-money analyst at Clickout Media, in the comments sent by e-mail.
“The current range of 4.25% to 4.5% is already low enough to maintain risk appetites, even if inflation is always higher than the objective of the Fed. Bitcoin seems safe to -Fying of $ 100,000 watermark, and it could break higher in the coming months if Donald Trump Pressures Jerome Powell in accelerated cuts because he hinted that he can.
Powell has also opened the door to banks to start serving cryptographic companies, provided they take appropriate precautions. “Banks are perfectly able to serve cryptographic customers as long as they can understand and respond to risks,” said Powell at a press conference following the Fed rate decision.
Meanwhile, US President Donald Trump criticized the Fed and Powell, accusing them of not having controlled inflation and the economy and putting Powell to reduce interest rates until 2025.
“Because Jay Powell and the Fed have failed to stop the problem they have created with inflation, I will do it by unleashing American energy production, reducing the regulations, by rebalancing international trade and By reviving American manufacturing, but I will do much more than the end of inflation, I will return our country financially, and otherwise, powerful again, “Trump poster on his social account of truth.
“The Fed has done terrible work on banking regulations. The Treasury will direct the effort to reduce unnecessary regulations and will release loans for all Americans and businesses. If the Fed had spent less time on Dei, the Gender ideology “, green” energy and false climate change, inflation would never have been a problem.
The rate decision will be published Wednesday at 2 p.m., followed by the very important press conference led by the president of the Fed, Jerome Powell, in which journalists will press him for a reaction to the comments of Trump according to which the rates of interest should drop by “many”.
“I think I know the interest rates much better than them, and I think I certainly know them much better than the one who is mainly responsible for making this decision,” said Trump last week.
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Last year, the Republican candidate at the time, Trump, said that the American presidents should have his say on the decisions taken by the Fed, which increases the possibility that he can lose his independence.
“We expect (the president of the Fed Powell) to be as diplomatic as possible, while firmly committing to the nourished independence,” wrote Ajay Rajadhyaksha, economist in Barclays, in a note seen by Axios.
“Now that Trump has called in a very vocal way for lower interest rates, if the Fed supports monetary policy, it will give the impression that they have given up and have lost their independence,” told The Isabella Weber, economist at the University of Massachusetts Amherst Financial time.