{"id":61033,"date":"2022-05-05T13:15:45","date_gmt":"2022-05-05T10:15:45","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61033"},"modified":"2025-09-05T09:44:05","modified_gmt":"2025-09-05T06:44:05","slug":"fed-shocks-markets-bitcoin-climbs-above-40000","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/fed-shocks-markets-bitcoin-climbs-above-40000\/","title":{"rendered":"Fed shocks markets. Bitcoin climbs above $40,000"},"content":{"rendered":"

The Fed, after the May 4\u20135 meeting, raised<\/a> the target range for the federal funds rate by 50 basis points to 0.75% to 1.00% per year. At the press conference, Fed<\/span> Chair Jerome Powell ruled out increasing the pace of policy tightening going forward.<\/p>\n

Ahead of the meeting, the futures market priced in a 94.3% probability that the Fed would raise rates by the maximum 75 basis points at the June 15 meeting, the largest since 1994. Currently, the indicator has fallen to 83.1%.<\/p>\n

Powell explained that the committee is not actively considering this scenario due to expectations that inflation will stabilise after its jump to an all-time high of 8.5%.<\/p>\n

\n

\u201cIf inflation has peaked, the Fed has some room to exercise patience. A less aggressive policy would be positive for digital assets\u201d,<\/em> said Joe Orsini, Director of Research at Eaglebrook Advisors, in an interview with CNBC<\/a>.<\/p>\n<\/blockquote>\n

Powell repeatedly rejected the possibility of a recession in the economy and said he was ready to continue fighting inflation.<\/p>\n

On May 4, the Fed also decided to begin balance-sheet runoff. In June, monthly pace will be $47.5 billion and over the next three months accelerate to $95 billion.<\/p>\n

Against Powell’s remarks, the price of the leading cryptocurrency rose by more than $1,000 in half an hour, briefly breaking the $40,000 level. In the last 24 hours, the pace of gains eased to 1.2%. At the time of writing, the asset was trading near $39,500.<\/p>\n

\n
\"\u0424\u0420\u0421
Hourly BTC\/USD chart from Coinbase. Data: TradingView.<\/figcaption><\/figure>\n<\/div>\n

Bitcoin’s rebound coincided with gains on Wall Street. The S&P 500 closed up 2.99%, Nasdaq Composite up 3.19%. Gold rose 0.72%. The U.S. dollar against a basket of currencies fell 0.91%.<\/p>\n

Earlier, BitMEX co-founder Arthur Hayes said the likelihood of Bitcoin dropping to $30,000 by the end of Q2 2022 due to Nasdaq’s decline.<\/p>\n

Earlier, Glassnode analysts said the process of redistribution of coins from speculative investors to hodlers had ended and allowed Bitcoin to form a bottom.<\/p>\n

Subscribe to ForkLog news on Telegram: ForkLog Feed<\/a> \u2014 full news feed, ForkLog<\/a> \u2014 the most important news, infographics and opinions<\/p>\n","protected":false},"excerpt":{"rendered":"

The Fed, after its May 4\u20135 meeting, raised the target range for the federal funds rate by 50 basis points to 0.75% to 1.00% per year. At the press conference, Fed Chair Jerome Powell ruled out increasing the pace of policy tightening going forward.<\/p>\n","protected":false},"author":1,"featured_media":61034,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1249,1440,1224],"class_list":["post-61033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-federal-reserve-system","tag-jerome-powell","tag-macroeconomics"],"aioseo_notices":[],"amp_enabled":true,"views":"31","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=61033"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61033\/revisions"}],"predecessor-version":[{"id":61035,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61033\/revisions\/61035"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/61034"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=61033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=61033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=61033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}