This was the first time Bitcoin rose above $43,000 since Monday's flash crash that saw the crypto market give up gains from the past two weeks. (NurPhoto via Getty Images)
Bitcoin (BTC-USD) bounced back above $43,000 (£33,979) in early trading on Thursday after the US Federal Reserve announced another interest rate pause at its last meeting.
This was the first time Bitcoin rose above $43,000 since Monday's flash crash that saw the crypto market give up gains from the past two weeks.
The Fed's rate hike was in line with analysts' forecasts and left its key interest rate in a range of 5.25% to 5.50%.
Read more: Crypto live prices
The move marked the fourth rate break of the year, after the central bank kept rates stable in November, September and June.
“Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation,” the Fed said in a statement.
“Recent indicators suggest that economic activity growth has slowed from the strong pace in the third quarter. Employment growth has moderated since the beginning of the year but remains strong and the unemployment rate remains low,” it said.
Possibility of tariff reductions
The Federal Reserve now expects a 75 basis point reduction next year. Of 19 Fed officials, 17 forecast lower interest rates through the end of 2024, none of them forecast an increase.
Federal Reserve Chairman Jerome Powell said the central bank was aware of the danger of “overdoing it” and plunging the economy into recession.
Read more: The Bank of England is prepared to leave interest rates unchanged
Risk assets in general were strengthened after bond yields and the US Dollar Index (DXY) fell sharply on the Fed's dovish 2024 forecast.
Wall Street rose on Wednesday afternoon following the Federal Reserve's monetary policy decision. The Dow Jones Industrial Average (^DJI) rose 1.4%, the S&P 500 (^GSPC) rose 1.4% and the Nasdaq (^IXIC) also rose 1.4%.
Watch: Crypto bosses pour millions into anti-aging tech to live longer | The crypto mile
Download the Yahoo Finance app, available for Apple And Android.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.