The United States Federal Reserve (FED) leaves interest rates unchanged, which has driven the price of Bitcoin higher.
The price of Bitcoin is trading above $42.760 per BTC, at the time of writing this article. The current price of the cryptocurrency represents an increase of 4,4% in the last 24 hours. This increase in its price has been driven, mainly, by the new announcements that the FED has given regarding interest rates.
The Federal Reserve of the United States, the country's central bank and the agency in charge of its monetary policy, withstood the increase in interest rates for the third consecutive time, keeping rates stable and unchanged, in a range between 5,25% and 5,5%.
According to various media reports, although the FED has not yet reached its goal of placing inflation at 2%, the US economy has been evolving positively, which is why the agency has been easing its monetary policy, in compared to last year. In 2022, the FED aggressively raised interest rates 11 times.
Bitcoin is on the rise
Although the price of Bitcoin corrected slightly, after having exceeded $43.300 per unit on Wednesday, the cryptocurrency remains on the rise after the FED's decision regarding rates was announced.
Source: CoinMarketCap
In addition to Bitcoin, other cryptocurrencies such as Ethereum (ETH), Solana (SOL) and Cardano (ADA), are also trading bullish currently, rising 3,7%, 5,6% and 16,9%, in the last 24 hours, respectively.
Additionally, the FED has projected several cuts to interest rates for next year, with the aim of placing them in a range of 4,6% at the end of 2024. These projections of a reduction in interest rates are also proving bullish. for cryptocurrencies and risk assets. Shares of cryptocurrency-related companies, such as MicroStrategy (MSTR), also rose and closed higher on Wednesday with the projections announced by the FED for the next year.
The user of weaken,” boosting stocks and cryptocurrencies.
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