• The US Federal Reserve has announced the start of the disinflationary process of the US economy, raising the interest rate by another 25 base points.
• This announcement has caused Bitcoin to rise 3.2% in the last 24 hours and break its $23k resistance level.
• Fed chairman James Powell is still not optimistic about their future moves this year and is eyeing more rate hikes in the near future.
US Federal Reserve Announces Disinflationary Process
The US Federal Reserve has announced the start of the disinflationary process of its economy, raising interest rates by another 25 base points. This acknowledgement has resulted in a broader financial market rally, with major indices like NASDAQ climbing despite the increase in interest.
Bitcoin Breaks Resistance Level
As a result of this news, Bitcoin rose 3.2% in the last 24 hours and broke its $23k resistance level. Although Powell is still not optimistic about future moves this year and is eyeing more rate hikes in the near future, Bitcoin could see further growth with traders being overly optimistic about their prospects.
Consumer Price Index Report
Last month’s December Consumer Price Index report showed a downward trend in CPI since last year’s aggressive quantitative easing measures from the Fed, with inflation at 6.5%, still higher than their target inflation rate of 2%.
Powell Acknowledges Disinflationary Process
At a press conference, Powell indicated that they may be winding down their rate hikes because of this slowdown in inflation and said “We can now say I think for the first time,” he said, “that the disinflationary process has started.”
Bitcoin Upward Trend Continues
At $23,828 at time of writing, Bitcoin briefly broke past its $24k resistance earlier today which offers a glimpse into a bullish future for cryptocurrency markets. With dovish remarks from Powell regarding future economic plans and an overly optimistic market response to them could spell further gains for Bitcoin prices going forward.