Bitcoin briefly fell below the $61,000 mark and then rebounded to break through $64,000. It rose to a maximum of above $68,000 this morning.
Previously, the market's U.S. inflation reports for January and February sparked concerns that the Federal Reserve might take longer to start cutting interest rates. But Fed Chairman Powell said at a press conference after the meeting that the two reports did not change his view on inflation, which he believed was gradually declining. The language of Powell's speech was generally less hawkish and more dovish than his remarks in January.
The Fed's dot plot shows that policymakers still expect to cut interest rates three times by 25 basis points each time before the end of the year. According to the dot plot, Fed officials' median forecast for the federal funds rate at the end of 2024 is 4.6%, compared with 4.6% previously. The dot plot shows the median forecast for the long-term federal funds rate is 2.6%, compared with 2.5% previously.
After the release of the Fed dot plot, the market's immediate reaction was to breathe a sigh of relief. Previously, investors were worried that the Federal Reserve would cut interest rates less often this year, so they retained expectations of three interest rate cuts, pushing up U.S. stocks and pushing down U.S. bond yields. U.S. stocks closed higher on Wednesday, with all three major U.S. stock indexes hitting record closing highs.
The Federal Reserve's tightening monetary policy cycle that began in early 2022 has reached a clear turning point. The U.S. dollar may enter an interest rate cutting cycle for as long as two to three years, which will cause a significant increase in the price of gold and other precious metals denominated in U.S. dollars. The upcoming US dollar easing policy cycle will also have overflow benefits for the currency market. The price of the pie will rise in the long term as the Federal Reserve releases water. The rise of the pie will also boost the prices of other altcoins.
The bullish trend in the currency market began 3-6 months ahead of expectations of the Federal Reserve's easing policy. There is a saying: If you don't know the true nature of the bull market, you just live in the bull market.
