Crypto Market Turns Green As FED Leaves Interest Rates Unchanged
In a much awaited meeting involving highest level policy makers, the FED today announced to keep interest rates unchanged and accelerate the tapering. Reacting to the news crypto market has already made a healthy jump with large cap cryptocurrencies up by almost 4% at the time of writing.
Most cryptocurrencies including Bitcoin were down by more than 25% on their MOM charts prior to the news. The speculations over a blow off top has spread fear among investors & fear-greed index touched extreme fair with reading of 16 on Dec. 11th, 2021. As predicted by CoinGape, bitcoin price action signaled a 5% move to $50k which seems to be in action now.
As for retail investors, the current news from FED seems to have doubts over macro economic policy changes affecting crypto and we may see its effect on crypto prices in next few hours.
What This Announcements Means for Global Market?
As reported by Aljazeera, this announcement is based on assumption that economy is making good progress and jobs market is recovering well. Powell said that,
Current unemployment rate of 5.9 percent understates the true scale of joblessness because the number of Americans either working or actively looking for work remains low.
He also mentioned that Central Bank is ready reconsider current monetary policies if an inflationary risk emerges to economic recovery.Source