Bitcoin, the largest cryptocurrency, rose to an intraday high of $44,031 on the Bitstamp exchange after the US central bank announced its decision not to change interest rates from the Fed. The bank kept the interest rate constant in the range of 0 – 0.25.
8 participants of the Federal Open Market Committee (FOMC) believe rates should increase next year. The FOMC also signaled that it could reduce if progress on targets continues as it maintains its bond-buying program:
“If progress continues on a large scale… a slowdown in the pace of asset purchases could soon be warranted.”
For now, it is reported that monthly purchases of 80 billion dollars of treasury bonds and 40 billion dollars of MBS will continue.
Fed Chairman Jerome Powell expects “high” inflation to stay in place for months. Powell added that the bond-buying spree could end in the second half of 2022. The FOMC may make an announcement regarding the discount at its next meeting.
The flagship cryptocurrency slid below $40,000 on Sept. 21 after two days of selling pressure triggered by fears of Evegrande that swept global financial markets earlier this week.