Bitcoin (BTC) Rebounds and Altcoins Follow
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- The forecasts influenced analysts’ reactions to the news.
- The year-end policy attempts to boost employment and stabilize prices.
After the Federal Reserve decided to keep interest rates unchanged, Bitcoin and the rest of the crypto market gained ground. The year-end policy attempts to boost employment and stabilize prices. Financial and cryptocurrency markets greeted the Fed’s official press statement.
The statement read:
“With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen … Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.”
Still Long Way to Cover
The forecasts influenced analysts’ reactions to the news. Short-term, it’s a welcome shift since investors may borrow to keep expanding. Long-term investors, meanwhile, pointed to the Federal Reserve’s intentions to hike interest rates three times next year to combat inflation. The price on December 15 closed at over $49,000, a 1.5% rise over the previous day’s low of $46,530 and a 5% gain over the previous day’s high. The Federal Reserve’s comments directly correlated with Bitcoin’s price.
In reaction to Bitcoin’s spike in value, most of the top 100 cryptocurrencies rose in value as well. Avalanche (AVAX) is presently the top gainer, up 18%. The USDC stablecoin introduction on its network seems to have aided the astonishing rise. However, Solana has seen double-digit daily price rises since the beginning of the month. Ethereum, on the other hand, rose 5%, breaking the $4000 psychological barrier.
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