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Bitcoin Volatility Kicks In as Fed Sharply Raises Inflation Expectations

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Wed, 06/16/2021 - 18:17
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Alex Dovbnya
The U.S. Federal Reserve has kept its easy monetary policy in place
Bitcoin Volatility Kicks In as Fed Sharply Raises Inflation Expectations
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The U.S. Federal Reserve announced on Wednesday that it had kept its near-zero interest rates unchanged.   

The Fed is also holding steady on its asset purchases of $120 billion per month.   

It has sharply raised its inflation estimate for the fourth quarter of 2021 to 3.4 percent, which is a whopping 1 percent spike compared to the previous forecast. Nevertheless, the central bank has reiterated that inflation is transitory.    

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Seven Fed officials see rates increasing in 2022 (as opposed to four in March). All officials see rates unchanged throughout 2021.

Bitcoin's price action has become topsy-turvy since the Fed decision. The largest cryptocurrency is currently trading at $38,770 on the Bitstamp exchange. 

Bitcoin
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The Dow Jones Industrial Average is also down over 300 points at press time.       

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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.