Bitcoin reaches a new high following a shift in Federal Reserve policy, leading to a rise in cryptocurrencies.
Fed's Policy Shift
The Federal Reserve announced a reduction in its quantitative tightening program starting in April, sparking speculations about future rate cuts. The decision was accompanied by modest economic forecasts, including a downgrade in GDP growth expectations to 1.7% and an increase in inflation expectations to 2.8%.
Crypto Market Reaction
Cryptocurrency prices surged, with Ethereum up by 0.8% to $2,043 and XRP soaring 12% following the SEC's dismissal of an appeal against Ripple. Global markets showed a positive response to the Fed's announcement, leading to a rise in major cryptocurrencies.
Market Trends Analysis
The last time Bitcoin experienced a similar sharp increase was in December 2021 following another significant Fed policy announcement. Bitcoin is currently trading at $85,623, maintaining its position above the $85,000 resistance level. The Relative Strength Index (RSI) sits at 58%, indicating that the market remains relatively neutral.
Economists suggest that the Fed's policy stance may drive the next crypto market trend, whether sustaining current gains or introducing volatility.
