Bitcoin rose by close to $1,000 to near $39,000 following a statement by the Federal Reserve Banks (Fed).
They are speculated to raise interest rates by 0.25% this March, lower than the 0.5% some expected, while keeping them unchanged.
“The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent.
With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.”
Nasdaq rose further on the news to gain 3.31% with eth crossing $2,700, before both retraced some of their gains.
Fed is also reducing the monthly pace of its net asset purchases, bringing them to an end in early March.
Beginning in February, Fed will increase its holdings of Treasury securities by at least just $20 billion per month and of agency mortgage-backed securities by at least $10 billion per month.
Both down from a combined $100 billion, about $50 billion each, at their peak but Fed made no statements in regards to reducing its balance sheet.
Powell is now to hold a conference following the meeting with it to be livestreamed.
Source: https://www.trustnodes.com/2022/01/26/bitcoin-stocks-jump-on-lower-expected-interest-rate-rises