Optimism prevailing in the market that spot Bitcoin ETFs will be approved has led to an increase in Bitcoin and altcoins.
While BTC exceeded $ 30,000 during the day, significant increases were also seen in some altcoins. While Bitcoin's activity continued, FED members talked about interest rate increases.
Atlanta FED President Raphael Bostic and Philadelphia FED President Patrick Harker made statements in their speech about when the FED will start reducing interest rates.
Highlights from FED official Bostic's statement speaking to CNBC are as follows:
“I think the FED will start reducing interest rates late next year.
The FED is determined to fight inflation. However, when inflation reaches 2%, the door may be opened for interest rate cuts.
At this point, I can say that an interest rate cut is on the table towards the end of 2024.
I am quite confident that the FED will keep inflation under control. The FED needs to be careful, patient and determined on this path.
“I trust that there will be no recession in the US economy and inflation will drop to 2 percent.”
Bostic is not a member of the Fed who has the right to vote on interest rates at the FOMC this year, but he will have the right to vote in 2024.
While Bostic pointed to the end of 2024 regarding interest rate cuts, another FED official, Harker, argued that interest rates should be kept constant for a while.
“I think the Fed should keep interest rates steady, even though economic growth is a little faster than expected.
The FED will not allow inflation to rise again.
“At this point, I am in favor of keeping interest rates constant at peak levels for a while longer and following economic data closely.”
Bitcoin hit its peak of $69,000 in November 2021, when the FED began increasing interest rates. Since the subsequent bear market is directly related to the FED's interest rate increases, it is thought that a policy change here may end the bear market and BTC may return to its old days.
*This is not investment advice.
