Speaking after Bitcoin went up to $ 45,500 during the day, FED Chairman Jerome Powell made important statements about interest and inflation.
When the statements started, it was observed that Bitcoin had withdrawn from $ 45,000 to $ 43,800.
The line headings from the descriptions are as follows:
- Inflation is hovering well above our target of 2 percent.
- I think it is appropriate to increase interest rates by 25 basis points in March.
- We think inflation will start to decline this year. However, if it continues, we can make stronger moves with a 50 basis point increase in interest rates in the upcoming meetings.
- The contraction of the balance sheet will begin after the rate hike process.
- Current digital currencies are speculation tools.
- Congress needs to act on cryptocurrencies.
Thus, the interest rate hike move in March, which was already considered almost certain, became final with Powell’s statements. It is known that the FED meeting in March will be held on March 15-16.
Although the price, which rose to $ 45,500 before the statements, retreated after the statements, Bitcoin continues to be traded at $ 44,100 as of the moment.
U.S. stocks are trading at an average of 1% higher.
Experts think that this move will not have much impact on Bitcoin, as the interest rate hike is now obvious.
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