Bitcoin cryptocurrency rose to $24,000 overnight
On the night of February 1-2, Bitcoin broke the level of $ 24,000. This happened against the background of the announcement of the Fed (Federal Reserve System of the United States) to increase the range of the key rate by 25 basis points – to 4.5%-4.75% per annum.
By the way, this is the eighth consecutive increase in the base rate, which is now at its highest level since 2007. The cryptocurrency market responded with positive dynamics — the global capitalization increased by more than $40 billion. According to the latest data from Coinmarketcap, the total capitalization of the crypto sector is now $1.09 trillion, which is 3.88% more than the previous day.
During the meeting of the Fed, the head of the department, Jerome Powell, noted that the latest indicators received by the regulator ‘point to a moderate decrease in costs and an increase in production.’ According to the agency, the number of jobs has increased in the US, and the unemployment rate is gradually declining. At the same time, inflation has decreased somewhat, but still remains at the highest level.
‘Russia’s war against Ukraine leads to huge human losses and economic difficulties, contributes to increasing global uncertainty. The US Federal Open Market Operations Committee (FOMC) pays close attention to inflation risks,’ said a press release issued after the Fed meeting.
We will remind you that on January 12, the BLS (Federal Bureau of Statistics) published data on inflation in the USA. The value of the consumer price index for December was 6.5%. The base inflation rate decreased to 5.7%. According to Powell’s statement, the FOMC set its inflation target at 2%. An increase in the interest rate in the long term should contribute to the achievement of this goal.
The cryptocurrency market reacted to the Fed’s decision with low volatility. According to CoinGecko, digital asset quotes from the top 100 list did not show significant dynamics.
Let’s add that at the time of writing, bitcoin is trading at $23,820, the market capitalization is $459.2 billion.
