Bitcoin's price surged following indications from Fed Chair Jerome Powell on future monetary policy.
Fed's Role in the US Economy
Traders and investors closely monitor FOMC minutes and Powell’s comments to gain insights into the US economic health and monetary policy plans. Leaving interest rates unchanged at their range of 4.25% to 4.5%, Powell confirmed inflation remains a key issue.
Market Reactions to Fed Announcements
Market reactions to Fed statements saw Bitcoin adding to its daily gains, reaching an intraday high of $85,950. The DOW increased by 400 points, while the S&P 500 added 77 points. Market participants are also forecasting a reduction in quantitative tightening.
Prospects for Cryptocurrencies and Traders
Crypto market participants expect further price increases for Bitcoin as they interpret Fed signals of potential rate cuts in 2025.
The Fed's statements supported positive market movements, bolstering traders' expectations of stabilization and potential growth in cryptocurrency prices.
