The Fed’s speech does not change | Thay GM can accept BTC
Fed will hike rates earlier than expected
Although the Fed meeting continues, there have been some official inflation announcements. The Fed admitted that inflation was above expectations this year and offered a timeframe for the next rate hike.
According to 12-month CPI inflation statistics, the inflation rate in the US is currently around 5%. The Fed thinks this rate is short-term and can bring it to 3.4%. The accepted average inflation rate is 2%, but the Fed says it is so low that the current rate of inflation is acceptable.
The monetary Fed has agreed to keep its short-term borrowing benchmark rate near zero, but officials hinted that a rate hike could come as early as 2023 after saying in March it won’t hike until at least 2024.
Many investors believe that given the current inflation rate, the Fed’s rate hike could come sooner. Historically, the low interest rate encouraged lending, which pushed money into the market easily, which resulted in strong growth in stocks, crypto, and many other assets. However, the fear of an early rate hike among investors in securities, cryptocurrencies, etc., decreased day by day.
Following this news, the BTC price corrected from over $ 41,000 to $ 38,000 and then stabilized. This Fed decision only has a short-term impact on prices. In the long run, the general trend of BTC over the years is still a growth trend. At the same time, the general trend of the Fed and a number of central banks in the countries is causing their fiat currencies to increasingly devalue.
Next, Dan Tapiero shared a Bloomberg chart from BTC.
This figure shows that the white line (which shows the price movement of BTC) every time the BTC price peaks, it is also on the same high price movement as in 2013, 2017. Therefore, Dan Tapiero believes that the current price of BTC has not yet reached the cyclical peak.
SEC further delays Bitcoin ETF
In a filing on Wednesday, the SEC again delayed passing a ruling against the VanEck Bitcoin Trust.
The SEC is making a decision to continue the delay for up to 45 days and may extend up to 240 days to enforce a decision. This is the second time that it has extended the review period for VanEck offers.
The SEC’s timeline, as well as this agency, states that they are not currently interested in Bitcoin ETFs and crypto in general as there are more important issues to solve. Therefore, the next time BTC can freely develop and the BTC ETF in the US will be delayed further.
In addition, Senator Sen. Cynthia Lummis has reaffirmed her confidence in the development of Bitcoin. She also attended the 2021 Bitcoin Conference in Miami last year.
She strongly argued that in addition to providing a legitimate store of value and alternative means of exchange, Bitcoin also acts as a check against the depreciation of the USD and other currencies. Cynthia Lummis also believes the development of Bitcoin will play a role in fueling the creation of renewable energy, green energy, as well as jobs in the state of Miami. It praised its security features in a world of increasing government and corporate surveillance. .
Next up, auto company GM has said that this company can accept payments in Bitcoin if customers need to.
Bitcoin is becoming more and more accepted and this seems to be the norm. Bitcoin, or crypto, is not just a cryptocurrency, it is also a store of value, a network that aims to create growth, jobs and income for both workers and governments.