"Calm down everyone, maybe the next FOMC will be BTC's rise?"
The price of the cryptocurrency king Bitcoin (BTC) broke through almost $70,000 as the United States (US) Consumer Price Index (CPI) data release last night showed a decrease of 3.3% compared to expectations of 3.4%.
However, the price of BTC, which failed to maintain its position, fell back to $67,244 when the Federal Open Market Committee (FOMC) meeting at two o'clock this morning saw interest rates unchanged despite increasing political pressure.
There is no denying that the FOMC has kept the benchmark funds range at 5.25% to 5.50%, but the economic outlook currently projects a rate cut of 25 basis points this year.
Please note that the lower inflation reading is a signal to the broader market that the Federal Reserve (Fed) is getting closer to its 2% inflation target and this means the US central bank will be ready to change its policy interest rate back to standard levels.
Through observation, the Fed's median expectation for the funds rate at the end of 2024 is 5.1% compared to 4.6% three months ago, so here it can be seen that the US central bank expects there to be a rate cut of 25 basis points this year and 100 basis points next year.
At a press conference after the FOMC meeting, Fed Chairman Jerome Powell said the economy has improved as more jobs have been created and the unemployment rate remains low, however there is still a risk that inflation will remain above target.
As of this writing, BTC price has surged by 1.57% to $66,140 in the past 24 hours with a market cap of $1.3 trillion but is still down 4.05% over the past week.
