Analytics / Forex and Crypto News
Yesterday, after the Fed meeting, the price of Bitcoin began to rise and reached the level of $59000. Following Bitcoin, altcoins also began to rise in price. As a result, the market is trading in the green zone today. Major cryptocurrencies are showing growth. The largest growth in 24 hours was shown by Cardano 15%, Chainlink 8%.
The rise in prices for cryptocurrencies is caused by the return of investors to the cryptocurrency market. After the Fed promised to keep the interest rate at a record low of 0,25% until 2023, investors again began to look for tools to make money. According to the Fed, the economy needs incentives. Keeping rates low allows companies and citizens to raise funds on more favorable terms.
As a result of the Fed's decision, the stock market also showed growth: the S&P 500 added 0.5%. The rest of the indices also showed growth.
Analysts suggest that the current situation is forcing investors to look for alternative instruments. Fiat currencies and government bonds are becoming less attractive assets due to monetary policy. This has a positive effect on the adoption of Bitcoin and the increase in demand for it.