Following the end of this month’s Federal Open Market Committee (FOMC), the cryptocurrency market, including bitcoin, showed a modest favorable market movement.
Yesterday, Federal Reserve chairman Jerome Powell announced in the committee that the United States would continue to raise interest rates, this time by 25 basis points.
While it is still a raise in an economy that is seeing a decade-long record of interest rates, the fact that the FED is beginning to shorten its monthly raises was seen as optimistic by the market.
BTC Spikes to $24K
A couple of hours after the report, bitcoin rallied up from $23,000 to $24,157, gaining 5% in value in the span of a few hours, according to CoinMarketCap.
Reaching the $24,000 margin is a huge victory for BTC investors. The world’s largest crypto by market capitalization had been struggling for over 10 days to get above the $23,000 resistance zone.
In fact, the last time the currency traded around that zone was six months ago, on August 18. If the currency continues to react favorably in the market, breaking the $24,000 margin could be the kickstart of a promising 2023 for bitcoin.
FOMC Influence In BTC’s Rise
As predicted by CCO, the indications that the Federal Reserve would continue to “slow down” the interest raises, meaning that with each new report, the committee would slowly decrease its interest rate raises (compared to the previous months), digital assets would likely react favorably to the announcement.
To put it in comparison, December had a 50 basis points increase in American interests, while the previous four months had a whopping 75 basis points increase.
Jerome Powell announced during his speech that after the year-long battle against a potential recession in the U.S. economy, inflation had shown signs of easing up. Job growth in America continues steady while the unemployment numbers remain under control.
Following the end of the committee, the European Central Bank followed through with the American decision and raised their own interests by 50 basis points.
The next major date that can heavily influence cryptocurrencies will be on February 14, when the American Government will announce the Consumer Price Index report for the month of January.