Main navigation

Bitcoin Drops 4% on Fed's Taper Announcement

News
Wed, 11/03/2021 - 18:18
article image
Alex Dovbnya
The Federal Reserve will start dialing back its unprecedented economic support
Bitcoin Drops 4% on Fed's Taper Announcement
Cover image via stock.adobe.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

Bitcoin, the flagship cryptocurrency, dropped roughly 4% to an intraday low of $60,018 on the Bitstamp exchange after it was revealed that the U.S. Federal Reserve would start "tapering" in November. 

BTC
Image by tradingview.com

In its most recent post-meeting statement, the Federal Open Market Committee announced that bond purchases will be reduced by $15 billion each month. 

Interests rates, however, remain unchanged for now, according to a decision made by Fed officials.  

The central bank still sees inflation as "transitory" contrary to the expectations of many financial analysts.

Related
Elon Musk Echoes Jack Dorsey's Concerns About Inflation
As reported by U.Today, billionaire PayPal co-founder Peter Thiel recently opined that high Bitcoin prices were a sign of "real" inflation.  

Last month, Twitter CEO Jack Dorsey sparked heated debates with his controversial tweet about "hyperinflation."    

The largest cryptocurrency is yet to fully recover from the plunge. At press time, it is changing hands at roughly $61,800 on major spot exchanges.

Bitcoin has been struggling to regain bullish momentum after hitting its current lifetime peak of $67,276 on Oct. 20.     

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.