Yesterday, many investors around the world were anxiously awaiting the latest news from the US Federal Reserve. Unsurprisingly, FED chief Jerome Powell announced that the current course will be continued. That means: no interest rate hikes, even more security purchases and loan programs for companies. As a result of the news, the Bitcoin price reacted positively and flirted with the $ 10,000 limit.
Interest rates and aid packages remain low
The corona pandemic is never ending, is bringing more and more companies to their knees and increasing unemployment in the United States. The United States wants to counteract this development with low interest rates and aid packages. But how long will it last?
At a meeting in Washington yesterday, FED chief Jerome Powell announced that the course would continue. It can therefore be assumed that the key interest rate will remain at this level (almost 0) for months, or even years. For comparison: in March the base rate was at least 1,50%. A continuation of the previous course also means further enormous aid packages in the form of lending and buying securities.
Despite fierce criticism, the US Federal Reserve will do everything in its power to save the situation, as Powell said in Washington yesterday:
We at the Federal Reserve will use all of our tools and do everything possible to provide relief and stability and to ensure that the recovery will be as strong as possible.
Experts believe that the current positive developments on the stock market despite all these announcements can’t last long. Because, in the opinion of many economists, this does not in any way reflect the current situation on the world market. Despite falling purchasing power, the NASDAQ reached a new all-time high yesterday.
Bitcoin course reacts to reports from the United States
The Bitcoin price was able to react to the reports from the USA after days of sideways movement. A sudden increase in volume caused the price to rise from $ 9,750 to just under $ 10,000 for a short time. However, the magical limit for many investors could not be broken. The following graphic clearly shows the rapid rise in the price and trading volume at 18 p.m.
After a short recovery, the Bitcoin price stabilized with gains above $ 9,850. The volatile rate is likely to be a reaction to the continuation of the Fed's course, which is why many investors are looking for alternative investments.
Investors who are particularly open to alternative investments are increasingly driven to decentralized finance. As we recently reported, the market for tokens in DeFi applications rose to over $ 2 billion in total:
Markus from Kryptokumpel.de
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