The president of the Federal Reserve Jerome Powell appeared publicly for the first time after last week’s reduction of percent rates. by the Fed. During the speech, which was delivered on September 23 in the Greater Providence Chamber of Commerce in Providence, Rhode Island, he said the words that were negatively received by the cryptocurrency market. Bitcoin is still cheaper.
Bitcoin loses its value
The Bitcoin course after Powell’s speech deepened the declines. Currently, it costs just over USD 112,000, but a few hours ago it fell to around USD 111,000.
Ether has made up to $ 4,000, today you pay $ 4,144 for 1 ETH. Unlike Bitcoin, the Ethereum cryptocurrency did not deepen the hole.
Reason for declines? Theoretically, the words that Powell said. But what exactly did he pass on?
Referring to the reduction of interest rates by 25 base points last week, he stated that the risk of falling employment prompted the FED to cut. In fact, he added, the reduction was another step towards “more neutral policy.” He added that after the September Decation Fed is “in a good position”.
Referring to inflation, Powell stated that the last price increases largely reflect the customs and market uncertainty. Long -term inflation expectations are in line with the Fed’s goal of 2%.
The central bank has two goals: controlling inflation and achieving maximum, possible employment, he summed up.
Besides, there were still no specifics. The head of the Fed, as almost always, emphasized that the federal reserve policy depends on the data and further cuts or lack of them will depend on them. What could scare investors? He stated that too quickly lowering interest rates could lead to high level inflation.
There will be no cuts?
The valuation of the Fed Watch Tool shows that the market still expects cuts: two by the end of the year, with a total scale of 50 PB. So nothing has changed.
There are many indications that what we see in the BTC/USD chart is still just a correction. The bull market did not end, and the next quarter should be under the sign of a bull.
