Bitcoin is showing its strength even after the Federal Reserve decided to keep the interest rates unchanged. Jerome Powell, the Chair of the Federal Reserve hinted at a rate increase this year. As expected the Federal Open Market Committee (FOMC) chose to maintain interest rates at the levels as they were, in July. This decision aligns seamlessly with market expectations, as evidenced by data from CME Group’s FedWatch Tool.
Notably, this decision coincides with a tweet by Santiment, which highlights the Federal Reserve’s choice to keep interest rates steady while leaving room for increases. Interestingly, cryptocurrency market caps have remained robust despite the S&P 500 experiencing a dip to 4-week lows, indicating a promising shift in correlations.
🇺🇸 The #Fed left interest rates where they were at the #FOMC meeting today. However, they did keep the door open for further rises. #Crypto market caps have held up well, despite the #SP500 plummeting to 4-week lows. A promising correlation break sign.👍 https://t.co/xgQ9FCern3 pic.twitter.com/dEyJaOv959
— Santiment (@santimentfeed) September 20, 2023
In their press release, the FOMC emphasized its commitment to achieving maximum employment and maintaining a long-term inflation rate of 2%. While the market had anticipated this pause in rate hikes, the Fed’s language concerning future inflation remains cautious, offering no explicit assurances of a more accommodative stance. The press release conveyed the message that the Committee would continue to monitor incoming economic information and stand ready to adjust monetary policy as needed to achieve its goals.
In response to these developments, Michaël van de Poppe, CEO of trading firm Eight, suggested that further rate hikes were unlikely in the near future. He predicted that Bitcoin would benefit from this stance, aligning with the sentiments of many cryptocurrency enthusiasts.
The price of Bitcoin (BTC) stands at $27,021.86, accompanied by a 24-hour trading volume totaling $8.8M. Over the past 24 hours, Bitcoin has experienced a slight price decline of -0.36%, while it has recorded a notable 2.78% price increase over the past 7 days. With a circulating supply of 19 million BTC, Bitcoin currently boasts a market capitalization of $526.7B.
Despite these advancements, the price of BTC/USD managed to stay above $27,000, showing stability in the intraday trading range. The fact that Bitcoin can handle changes in policies without trouble has caught the attention of investors and analysts alike, highlighting its increasing significance in the world of finance.
