Why Is It Bullish for Bitcoin and Crypto?
The Fed remained unchanged on Wednesday to 4.25 % -4.50 %. This marks “the eagle pause” inflation Maintain rising, and the growth of economic activities is stable.
The decision was after the end of 2024 continuously decreased the rate, but it showed that the decision makers were cautious about the loose of premature currencies.
The stable interest rate may be a bullish on cryptocurrencies
After the announcement, there is no major market change. Generally, a stable price is a decline for the encryption market. The Fed’s position shows that capital will not flow into high -risk assets quickly.
However, the main cryptocurrency saw a moderate rise. Bitcoin, SoranaXRP received nearly 2 % of the income within an hour after the release.
Therefore, there may be market optimism for continuous liquidity stability. Usually the suspension of speed hiking is regarded as Betting risk assetsIncluding cryptocurrencies.
Lower interest rates (or expectations for stable interest rates) reduce the attractiveness of traditional fixed income investment. This drives investors to move Higher assets Like stocks and encryption.
“Trump begged here to cut, but the Fed is like ‘No.’. For cryptocurrencies, this is a bad news, because when the interest rate remains high, investors will relax and avoid risks. The script is worse, we can see some moves, “Mario Nawfal (Mario Nawfal) Write On X (previously Twitter).
in addition,Eagle pause‘It means that the economic situation is stable enough to avoid actively tightening. This has created a favorable environment for the cryptocurrency market, which is booming in liquidity and investors’ confidence.
Fed’s policy position and market expectations
Although the interest rate is stable, the Fed’s statement shows that The inflation rate has remained rising And canceled the previous quotation of its 2 % target progress. This shows that further reduction may not be imminent.
However, the stable employment level and economic toughness have reduced the fear of recession, supporting speculative assets such as Bitcoin and other cryptocurrencies.
President Trump It has urged the Federal Reserve to continue to reduce the rate, but the central bank officials chose to maintain their current position.
Overall, the encryption market will closely monitor any signal of future liquidity expansion. Until the Fed’s steering tax reduction rate or the implementation of measures to increase currency stimulus, the cottage coins are It is expected that the bitcoin is not enoughEssence
Bitcoin, and it Stronger institutional attraction And macro toughness, it is still a safer bet in the eagle currency environment.
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