FED Chairman Powell has just started his fourth announcement of the year after about a month and a half. Before his speech, the fourth FED decision of 2024 was also announced. Bitcoin and altcoin investors were eagerly awaiting the 2024 interest rate decision, which remained unchanged, and the FED kept the rate steady at the 5.25-5.50 range. A decline was also seen in the core values, including inflation, which impacted BTC as reflected in the charts when the data was released earlier today. Currently, all eyes are on Powell. Here are the highlights from Powell’s speech.
Powell is Making a Statement
About a minute ago, FED Chairman Jerome Powell took the stage, making an important speech that could affect the second half of 2024 and the future, following the announcement made exactly 30 minutes ago. It is thought that Powell’s statements could also guide investors closely following the market before the next FOMC meeting in July.
The speech, which started at 21:30, seems to hold significant importance for cryptocurrency market participants. It is a well-known fact that Powell’s speeches have had a significant impact on market movements from past to present. Throughout the speech, we will share the important highlights of Powell’s statements with you in this news.
According to the announcement made at 21:00, the FED decided to keep the interest rates unchanged. It is also seen that the complex statements by FED officials regarding when the interest rate cut will occur have not yet reached clarity.
It is expected that Powell’s fourth announcement of the year will touch on some points regarding the increasingly difficult interest rate cuts to be implemented during the second quarter of 2024.
Here are the important highlights from Powell’s statements:
Fed and Cryptocurrencies
The FOMC decisions, followed breathlessly worldwide, were closely related to the global economy as well as the cryptocurrency markets. After the positive atmosphere created by the inflation data during the day, it was once again seen how significant the impact of the FOMC decision could be.
The interest rate hike process that started in March 2022 almost pulled the plug on the cryptocurrency market when combined with a series of events in the crypto space. The interest rates continued to rise until mid-2023, after which they took a steady appearance, suggesting that an improvement in the US economy might have begun, which paved the way for renewed focus on BTC and other risky assets.
After the interest rate was stabilized, it was observed that the cryptocurrency market started to become active again in the last period of 2023. During this period, many altcoins accompanying Bitcoin also saw a revival, triggering a rise in the market. After the spot Bitcoin ETF approval decision by the SEC on January 10, Bitcoin had risen above $49,000 but then fell to $38,500, only to suddenly reach ATHs in mid-March.
A potential drop following the continued stabilization of interest rates could negatively impact the dollar, contributing to the rise of risky assets like gold, silver, and Bitcoin. Yesterday, Bitcoin’s price had fallen to $66,000. Today, after the decision, BTC’s price pulled back to $69,000.
