Wednesday, July 24, 2024

Can Bitcoin Regain Its Momentum After the Federal Reserve Cuts Economic Stimulus Plans?

As per the latest reports, Federal Reserve made an exciting announcement which reveals their plans for 2022. The announcement revolves around slicing the acquisition of bonds, and as per the analyst, it is anticipated there will be a decline of 15 million dollars a month. Alternatively, the agency has determined to elevate the stakes and increase the cut fee to 30 million dollars a month. Additionally, if that won’t be enough, there will be a change in interest rate thrice at the beginning of 2022. Also, the other three interest rates will hike in 2023.

According to the inner reporters of the agency, the decision is appropriate irrespective of the cut in the bond rate in the initial phase. This shocking news surprised every person as the median inflation will be off the mark, which is 5.3% originally as compared to 4.2% as expected. Also, there will be a change in the unemployment rate as it seems to dip off to 3.5% by the end of 2022.

The reaction of Bitcoin

This announcement created a lot of tension for the Bitcoin market, and investors, after hearing the news, refrained from investing in Bitcoin. Investors are dependent on Fed meetings for making a further decision on investing in Bitcoin.

There has been a drastic impact on the Bitcoin market after this announcement and the price of Bitcoin will remain below $50,000. Being highly volatile, Bitcoin might reclaim its original and higher value. However, every time, Bitcoin comes back stronger after seeing a fall, as history has shown

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
RELATED ARTICLES

Most Popular