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Fed Chairman Jerome Powell Says No Rates Hike Soon, Bitcoin (BTC) Jumps Back to $59K but Is at $55K Again

Summary:
The Fed chairman said that it will continue with its monetary easing policy through 2023 with no major hikes in interest rates. BTC price gained 6% post Powell’s comments. Giving a brief of the US Economic Outlook on Wednesday, March 17, Federal Reserve Chairman Jerome Powell said that they would be continuing with zero-interest rates at least through 2023.Powell’s statements offered a major confidence boost to the market. The near zero-interest rates will also allow corporates to borrow more money and continue with their expansions.The US Central Bank has also assured that it will keep its monetary policy loose monetary policy loose “for as long as it takes”. The immediate goal is to turnaround the wounded economy by the COVD-19 pandemic.Bitcoin after Comments from Powell on Interest

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The Fed chairman said that it will continue with its monetary easing policy through 2023 with no major hikes in interest rates. BTC price gained 6% post Powell’s comments.

Giving a brief of the US Economic Outlook on Wednesday, March 17, Federal Reserve Chairman Jerome Powell said that they would be continuing with zero-interest rates at least through 2023.

Powell’s statements offered a major confidence boost to the market. The near zero-interest rates will also allow corporates to borrow more money and continue with their expansions.

The US Central Bank has also assured that it will keep its monetary policy loose monetary policy loose “for as long as it takes”. The immediate goal is to turnaround the wounded economy by the COVD-19 pandemic.

Bitcoin after Comments from Powell on Interest Rates

Bitcoin (BTC), which was under major pressure earlier on Wednesday, seemed to be reversing its direction post Powell’s announcement. The BTC price surged more than 6% moving past $59,000.

At press time, BTC is trading at a price of $55,629.94 with a market cap of $1.037 trillion. It turns out that the Fed’s easing monetary policy has helped the stock and crypto markets, Bitcoin (BTC) in particular.

In the latest development, banking giant Morgan Stanley is now looking to offers its wealth management giants access to Bitcoin. This makes it the first bank in America to offer its high-profile clients exposure to Bitcoin (BTC).

Bitcoin (BTC) Will Continue to Surge Further in 2021

A lot of market analysts are bullish on Bitcoin’s further price surge in 2021. Popular Bitcoin evangelist Max Keiser has already said that the BTC price can climb to $77,000 in near future. Besides, Keiser is much bullish to the extent that he expects Bitcoin to touch $220K by the end of 2021.

Recently, Pantera Capital CEO Dan Morehead stated that the BTC price can touch $115K by August 2021. Morehead’s BTC price predictions are based on PlanB stock-to-flow model that measures BTC scarcity governed by the underlying network programming coded in the Bitcoin blockchain. Earlier in January 2021, Pantera stated that BTC price will add on average $10,00 every single month hitting its target of $115K by within eight months.

In his recent tweet, prominent market trader Peter Brandt stated that Bitcoin is “defining an orderly bull trend”. Brandt notes that the ongoing bull run has been smooth so far with the exception of March 2020 crash.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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