In todays meeting FED’s Chairman Jerome Powell announced that FED will hike the interest rate for 0.25% or 25bp
The cryptocurrency market has been volatile and has seen fluctuations in the recent past, but January was very positive for the crypto investors. Bitcoin and Ethereum have experienced growth over the past month, with Bitcoin rising by 43% and Ethereum by 37% of their value. Ethereum, the second largest digital asset in the market, saw a rise in its value for 2.17% an hour after the Jerome Powell’s press conference, and now (at the time of writing) trading at $1,627 per ETH, while BTC rise its value by 1.3% with $23,473 price per BTC.
Despite FED’s rate hike of 0.25% or 25bp crypto market has shown strong buy signal and didn’t went to red zone, which is more interesting, the Fear & Greed index raised after the Powell’s press conference and it indicated almost a strong buy, while in recent period is at neutral level.
In todays press conference, Federal Reserve Chairman Jerome Powell emphasized the importance of maintaining the 2% inflation target and the significance of price stability in the economy, he also, mentioned that the committee is committed to bringing inflation back to 2% through appropriate actions, but stressed the need to not act prematurely. Powell also noted that it would take some time for the effects of tightening actions to be realized.
Powell’s had positive comments about the economy and had a cautionary tone, the reminder, that it would take time to see the effects of the Fed’s actions and he also indicated that further interest rate increases are expected in the coming months, leaving traders uncertain about the future.
The Fed’s chairman said its actions to curb prices is working, while indicating it plans to keep rates high for some time.
“Over the past year we have taken forceful actions to tighten the stance of monetary policy,” Fed Chair Jerome Powell said in a press conference Wednesday.”Even so, we have more work to do. Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy,” He stated
“We expect ongoing hikes will be appropriate,” Powell added.
These measures from the central bank highlights the unpredictable nature of the financials markets and their dependency of Central banks actions. However investors will need education, fundamental analysis and to follow the macroeconomy, before consideration of making an investment decisions.