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On Wednesday, the US Federal Reserve decided to leave the standard interest rate unchanged in the range of 4.25 % to 4.5 % – bitcoin's response immediately. A pause, although it is widely expected, came with slightly revised expectations that include a slower timetable for future price discounts and a noticeable modification in the pace of reducing the public budget of the Central Bank.
According to the Federal Open Market Committee (FOMC), it now refers to the “DOT plot” at the Federal Reserve Bank to points price discounts on the basis of 25 points for this year-many participants in the market are expected in December. Political makers emphasized that although interest rates remain in restrictions, the timing of actual discounts depends on the path of economic indicators, especially inflation and employment.
However, the latest statement no longer confirms that inflation and employment are “balanced”, which reflects the increasing concern of the committee on economic uncertainty. But perhaps the most important axis was the Federal Reserve Declaration that it would slow down the bond holding, known as “quantitative tightening”.
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Starting in April, the monthly surface flow of government bonds will decrease from 25 billion dollars to $ 5 billion – which is retreating from many analysts.
What does this mean for Bitcoin
Soon after the Federal Reserve's announcement, Bitcoin gathered nearly 4-5 %, over a period of $ 86,000. Nick Bhatia – founder of Bitcoin and author of Bitcoin Age – etc. Video update To dissect the effects of the decision. Bhatia said at the beginning of his analysis: “By increasing Bitcoin by 4 % on the news that the Federal Reserve slows down QT and is still committed to reducing interest rates,” noting that the market has been focused on the laser on whether the central bank will adjust its quantitative tightening approach.
Bathaya explained how the maximum monthly flow of flowing flow from 25 billion dollars to $ 5 billion can reduce liquidity restrictions in public order: “Now the Federal Reserve is still contracting to its public budget, but now he will do so by only five billion per month compared to 25 billion months, and this is a financial change.”
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“This is not some,” hey, we are on the cusp of QE now only “because we moved from 25 to five, but the first step is to get the public budget to stop contraction … so that if the federal reserve needs a mutation, it can go quickly from 5 billion in QT in a month to some modest expansion.”
Bhatia emphasized that such a step can feed on the appetite of the market risks: “The Federal Reserve Market sees what it is: it supports the creation of credit that expands public budgets around the world, and that the flow ends with the prices of assets … some of these assets can be stocks, Bitcoin – (and) other financial assets.”
Other experts are more severe in their evaluation. Participate founder of Bitmex Arthur Hayes I mentioned Via X: “Jaypow, QT mainly delivered during April 1. The next thing we need to install for Realz is either SLR exemption or QE restart.
Jimmy Cots, chief encryption analyst in Realvision, largely Consistently: “Last night, QT has been effectively died (for some time). Treasury fluctuations have declined directly and reflect the decrease in DXY earlier this month. This is all very positive.”
At the time of the press, Bitcoin was traded at $ 85,881.
Distinctive image created with Dall.e, Chart from TradingView.com
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