As the Federal Reserve outlines the easing policy for the rest of 2021, BTC has experienced partial volatility | Christopher | Capital | June 2021
Fed interest rates will remain unchanged until 2021
Bitcoin volatility is attractive to traders who can take advantage of two-way price volatility. At the same time, the basic attributes of absolute trust in Bitcoin make it an ideal store of value. These attributes are particularly desirable in an era when confidence in central bank policies is fading.
As the Bitcoin market forms a consolidation or interval structure, everyone’s eyes are focused on the Fed’s FOMC meeting just held.
In short, the Fed will maintain a loose monetary policy stance this year, and at the same time strive to fully digest the two rate hikes by 2023. However, this may vary depending on the monthly data, as Powell pointed out in the Q&A session.
According to Bloomberg data, the Fed released a so-called dot chart that outlines the interest rate path of the U.S. Central Bank. The committee decided to keep the target range of the federal funds rate at 0% to 0.25%.
At the press conference, Jerome Powell mentioned two things that caught my attention. First of all, the meeting is a “Talk about“Meeting; secondly, the Federal Reserve”We must be humble about our ability to understand data.“
In other words, Jerome Powell does not have a crystal ball, even though global market participants view his words as if he did.
Bitcoin’s situation couldn’t be better.
At the same time, Bitcoin seem In response to the Fed meeting, as information dripped into the ether, hands were exchanged within 4%.
All in all, the Fed outlines an easing policy, so any major macro earthquake may be officially postponed.
Fortunately, Bitcoin miners sent a positive signal last week taproot Upgrading to the required 90% (over 99%) means that the upgrade will take place in November 2021. The update is just a soft fork, so there is no need to make changes on behalf of the user.
The last Bitcoin network upgrade occurred in the 2017 SegWit proposal, which led to the Bitcoin Cash hard fork. About 10% of miners and users participated in it, which had a huge impact on the price of Bitcoin.
Relative network unity heralds future upgrades.You can learn more about Tap root upgrade Here.
Contrary to the opaque, vague and “wait-and-see” Fed policy, Bitcoin policy is predictable and network upgrades are completely transparent.
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