Bitcoin (BTC) climbed by over $2,000 on Dec. 15 as markets quickly reacted to news that the United States Federal Reserve would raise interest rates and curtail its bond-buying program starting in 2022.
“Kind of what we were thinking”
The momentum came without the Fed hinted that it could raise its benchmark rate three times next year, surpassing investor expectations. It would moreover increase the pace of its windfall purchasing taper, the inside wall said.
Concerns previously focused on such plans having a negative impact on both traditional and crypto markets, thanks to drying up of the “easy” availability of liquidity. In the event, however, it seemed that the information lay uncertainty over the policy to rest.
“From an probity perspective, now they just have to focus on earnings, margins and growth,” CNBC quoted Jim Caron, a senior portfolio manager and senior strategist on the global stock-still Income team at Morgan Stanley Investment Management as saying.
“It’s kind of a sigh of relief to the equities market who thought it might be much increasingly aggressive. It’s kind of what we were thinking anyway.”
With that, the S&P 500 widow modest gains, while altcoins joined Bitcoin in inching up just under 5%. At the time of writing, BTC/USD was consolidating at virtually $49,000.
BREAKING: FED keeps its interest rate at 0-0.25% as it is single-minded to employing the full range of instruments misogynist to help the US economy.
The manful market continues for #Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) December 15, 2021
Popular analysts remained cautious. While Cointelegraph freelancer Michaël van de Poppe maintained that the BTC marrow was hit on Dec. 4, William Clemente opted to hold off on recommending a market entry at current prices.
“My gut has been telling me to buy BTC, but sticking to my plan to be a proprietrix at $53K confirmation. Must follow plan,” he told Twitter followers.
An exit from the most recent range for December would be marked by $53,000, which would moreover return Bitcoin to a $1 trillion market cap valuation.
Ethereum tops $4,000
Major cap altcoins unfurled to be led by Solana (SOL), which capitalized on previous gains to unhook 14% daily growth at the time of writing.
Ethereum (ETH), the largest altcoin by market cap, recaptured the $4,000 mark during its own Fed-induced rally.
Against Bitcoin, ETH returned whilom the 0.08 BTC mark without hitting local lows of 0.078 older in the day.