FED meeting today was OK for the markets
FOMC holds interest rates steady, signals one more hike likely! This means green light and some fresh air for the markets - especially the crypto market!
WASHINGTON – The Federal Reserve held its key interest rate steady Wednesday but signaled another hike is likely this year amid still elevated inflation and a sturdy economy.
The central bank also forecast fewer rate cuts next year than previously expected as it keeps rates higher for longer to stamp out inflation.
The latest decision leaves the benchmark short-term rate at a 22-year high of 5.25% to 5.5%. It marks just the second meeting at which the Fed hasn’t raised its federal funds rate since it began its hiking campaign in March 2022.
GOOD NEWS FOR THE CRYPTO MARKETS FOR NOW
Rate hikes are likely to have a negative impact on the crypto market in the short term. Crypto is a risky asset class, and investors tend to shy away from riskier assets when interest rates are rising. Additionally, higher interest rates make it more expensive to borrow money, which could discourage leveraged trading in the crypto market.
However, the long-term impact of rate hikes on crypto is less clear. Some experts believe that rate hikes could actually be beneficial for crypto in the long run, as they could help to weed out weaker projects and pave the way for more sustainable growth.
Overall, it is difficult to say with certainty how the Fed's rate hikes will impact crypto. However, it is likely that the market will be volatile in the short term, and investors should be prepared for the possibility of price declines.
BITCOIN HALVING is coming with big steps
The next Bitcoin halving is expected to occur in April 2024. This is a scheduled event that occurs every 210,000 blocks, which is approximately every four years. During the halving, the block reward for mining a new Bitcoin block is reduced by 50%.
The halving is a key feature of the Bitcoin protocol that helps to control inflation and ensure the long-term sustainability of the network. By reducing the supply of new Bitcoin coming onto the market, the halving can help to drive up the price of Bitcoin.
Historically, Bitcoin halvings have been bullish for the Bitcoin price. For example, the 2016 halving was followed by a period of rapid appreciation that saw the price of Bitcoin rise from around $600 to over $20,000 in just over a year.
However, it is important to note that past performance is not indicative of future results. There is no guarantee that the next Bitcoin halving will have a positive impact on the price. The crypto market is volatile, and there are a number of factors that can affect the price of Bitcoin, including macroeconomic conditions, regulatory developments, and news events.
Investors should always do their own research and invest responsibly.
Here are some additional details about the next Bitcoin halving:
The exact date of the halving will depend on the hashrate of the Bitcoin network. However, it is estimated that the halving will occur in April 2024.
After the halving, the block reward for mining a new Bitcoin block will be 3.125 BTC.
The total supply of Bitcoin is limited to 21 million coins. The halving process will continue until all 21 million coins have been mined, which is estimated to happen around the year 2140.
Overall, the next Bitcoin halving is an important event that could have a significant impact on the Bitcoin price. Investors should carefully consider their own risk tolerance and investment goals before making any decisions about the crypto market.
BEFORE the BTC halving...
We must be full of patience, DCA out portfolio and look for good entries in crypto. Focus on the airdrop content and fill the pockets. Then we can invest in high volumes! Do not loose your ability to HODL. Many of the crypto investors jumped from the boat because there's a storm in the sea! Nobody wants to take high risks but want high returns!
