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Bitcoin Spikes as Fed Leaves Rates Unchanged

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Wed, 09/22/2021 - 18:30
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Alex Dovbnya
The hawkish Fed decision has made Bitcoin jump to an intraday high
Bitcoin Spikes as Fed Leaves Rates Unchanged
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Bitcoin, the largest cryptocurrency, rallied to an intraday high of $44,031 on the Bitstamp exchange after the U.S. Federal Reserve announced its decision to leave interest rates unchanged.

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18 participants of the Federal Open Market Committee believe that the rates have to rise next year.  

The FOMC also announced that tapering of its bond purchases may begin soon:    

If progress continues broadly… a moderation in the pace of asset purchases may soon be warranted.

Fed Chair Jerome Powell expects "elevated" inflation to remain in place for months. 

Powell adds that the bond-buying spree may come to an end by the second half of 2022. The FOMC could make an announcement about tapering during its next meeting. 

The flagship cryptocurrency slipped below $40,000 on Sept. 21 in the aftermath of a two-day sell-off triggered by Evegrande contagion fears that swept over global financial markets earlier this week.

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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.