Bitcoin Jumps as Feds Speeds Up Stimulus Withdrawal
There has been a relief in the crypto market after the Federal Reserve announced the speedy withdrawal of the Stimulus to acknowledge the growing threat of inflation. The withdrawal speed has been doubled to $30 Billion a month from the previous $15 Billion a month.
The Federal Reserve announced today that they will take steps to accelerate the withdrawal of the monetary stimulus that was provided as a support in the wake of the coronavirus pandemic. Earlier the withdrawal was at the rate of $15 Billion per month and now it has been doubled to $30 Billion a month that will ensure that the complete stimulus will be waived off by early 2022.
The crypto investors were closely watching the Fed’s decision as aggressive withdrawal would be against the price rise of the crypto industry as the increase in the rates by early next year would result in people staying away from risky assets such as Bitcoin. The price of Bitcoin has fallen by 15% in December alone due to the uncertainty over the decision by the Federal Reserve. Though the withdrawal has been accelerated, Crypto market jumped after the decision which shows that the investors were expecting even more aggressive withdrawal and hence, the jump can be seen as a sigh of relief for the investors.
The Federal Reserve has been printing more money since the Coronavirus Pandemic has hit the Global Economy. The Federal Open Market Committee in a statement said “Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation”, thus there is a need for hasty decision making and tackling the upcoming inflation.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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