Federal Reserve Chairman Powell took his place in front of the screen to answer questions and make statements regarding the critical interest rate decision that closely affects the markets.
However, cryptocurrency investors should be cautious during and after the statements, as there may be high volatility in the market. This behavior can be beneficial for them. So, what is Powell talking about after the latest Fed meeting that could potentially affect the global economy and the cryptocurrency world?
Powell’s Critical Statements
While the article is being shared live, Fed Chairman Jerome Powell first makes some statements about the US economy. He also seems to be making statements that will be of great importance to the whole world. The outcome of the XRP case and the uncertainty surrounding Binance before the trial could have a significant impact on the direction of the meeting. Today, which is the day of the speech, it could be a harbinger of the innovations that the tensions with the SEC can bring for cryptocurrencies and exchanges.
The statements being made at this critical period, when the economy is at stake, can shape and diversify the ideas and investments of investors considering investing in the cryptocurrency world. However, the speech may not be limited to just that.
Considering Powell’s past statements, it should be noted that not only short-term but also long-term thoughts and information that can shed light on possible changes can be shared.
The effects of the speech, which started at 9:30 p.m., will begin to manifest themselves in the coming days. It can be beneficial for investors to be prepared for this scenario with high volatility. We will share the important topics discussed in the speech with you in this article.
According to the announcement made at 9 p.m., the Fed unanimously decided to keep the interest rates unchanged. Considering that Powell’s statement will be overshadowed by the ongoing debt ceiling disputes and economic imbalances, it is not clear in which direction it will be.
- Powell started his speech.
- We need to proceed carefully.
- Consumer spending is strong. The Fed has come a long way, but its effects have not yet been fully felt. Our decisions will be based on data and risk assessments.
- We need to proceed cautiously in policy tightening. Nominal wage increases showed some signs of relaxation.
Fed and Cryptocurrencies
Fed decisions, which are closely followed by the whole world, continue to deeply affect not only the global economy but also cryptocurrencies. Interest rate hikes since March of last year have been replaced by the decision to keep the rates unchanged in the latest meeting. In addition, the XRP decision and the SEC-Binance tension during the interval between two meetings also drew attention.
During this process, high interest rate decisions from the Fed, its tightening policy it tried to implement in the economy, led to the appreciation of the US dollar and the depreciation of investment instruments against the dollar.
When the ongoing legal processes are examined as a whole, it may have moved Bitcoin away from being a safer haven and made investors uneasy. With the news of the Grayscale ETF application that came last night, there was an increase in the price of Bitcoin and altcoins. As of the beginning of the speech, Bitcoin continues to trade at $27,200.
Source:coin-turk.com
