Why Is Crypto Up – Dovish Fed, No Rate Cut, Wall Street Pepe Hits $64.5M
The post Why Is Crypto Up – Dovish Fed, No Rate Cut, Wall Street Pepe Hits $64.5M appeared on BitcoinEthereumNews.com.
The year’s first Federal Open Market Committee (FOMC) meeting concluded on a bullish note. In short: no rate cuts, dovish FED, and an improved labor market situation. In response, Bitcoin ($BTC) rallied to $105K for the first time since last Friday, and the cumulative crypto market cap rose from $3.45T to $3.6T. Let’s unpack the FOMC meeting highlights and what they mean for crypto. Fed Chooses Economic Growth Over Battling Inflation As usual, the FOMC touched on key economic indicators like employment rate, inflation, and GDP growth and discussed ways to enhance monetary policy. Key takeaways: Unemployment rate has decreased significantly Inflation is somewhat elevated but under control Interest rates will remain at the 4.25%-4.5% level Meanwhile, Trump demands more immediate rate cuts, pointing out that recent cuts weren’t sufficient to combat inflation. The Fed has historically been acting independently from the state head, but Trump believes the president ‘should at least be able to voice opinions.’ Overall, the Fed takes a dovish stance where it prioritizes economic growth and employment even if it means tolerating inflation above the target of 2%. While there was a temporary uptick in the broader crypto market, overall, investor reaction was a nothing burger. However, the lower-than-expected GDP growth of 2.3% might increase $BTC’s appeal as an inflation hedge in the long run. Analysts highlight that $BTC now trades just 4% below its all-time high and is 8% above the range midpoint, which strengthens the upward trajectory. Wall Street Pepe ($WEPE) Raises $65M, Could It Dethrone the Original Pepe? When the economy grows, investors are more willing to take on risks. This means the current meme coin bull run will continue well into 2025. That’s good news for Wall Street Pepe ($WEPE), a presale that’s rapidly gaining momentum with $65M raised. $WEPE now stands…
Filed under: News - @ January 31, 2025 1:24 pm