Bitcoin (BTC) Bounces Following US Federal Reserve Meeting
Bitcoin rallied sharply on Wednesday night, surging nearly $ 3,000 in a few hours, topping $ 49k
Dec 16, 2021
1 min read
Anna BakkerNews analyzer

The first cryptocurrency strengthened along with stock indices, which reacted positively to the announcement of the results of the meeting of the US Federal Reserve System.

The Fed announced its intention to accelerate the rollback of asset purchases, more clearly outlining plans to combat excessive inflation. Fed officials voted to keep interest rates near zero, but made it clear that they are ready to raise rates at least three times next year.

Meanwhile, the rise in risky assets and the weakening of the dollar may turn out to be short-term. According to the Fed's rate futures, the first rate hike is 90% likely to happen in April. Goldman Sachs expects rate hikes to triple in May, July and November.

An aggressive cut in bond purchases could hit risky assets like bitcoin, Morgan Stanley said, and expects a correction in the first quarter.

Kraken CEO Jesse Powell allowed a crypto winter to come after his unfulfilled $ 100,000 bitcoin prediction by the end of the year. However, a drop below $ 40,000 would trigger massive buying, he said.

According to Real Vision CEO Raul Pal, the best cryptoassets to invest in are Bitcoin (BTC) and Ethereum (ETH), as well as the altcoins Terra (LUNA), Avalanche (AVAX) and Solana (SOL).

“There has been a downtrend in cryptocurrencies for over a month now. These are not sharp downturns and short descents, but methodical fund sales, since they are very similar to the dynamics of traditional markets, ”the team of analysts notes.

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