{"id":3881,"date":"2022-05-04T20:05:06","date_gmt":"2022-05-04T20:05:06","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=3881"},"modified":"2022-05-04T20:05:07","modified_gmt":"2022-05-04T20:05:07","slug":"bitcoin-climbs-as-fed-confirms-inflation-is-much-too-high","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=3881","title":{"rendered":"Bitcoin climbs as FED confirms &#8220;inflation is much too high&#8221;"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>Bitcoin rose as much as 3% today as the chair of the Federal Reserve, Jerome Powell, directly addressed the American people, declaring that \u201cinflation is much too high\u201d and \u201cwe have the tools to bring inflation down.\u201d<\/p>\n<p>Powell also gave the market some guidance as to what can be expected for the rest of the year, saying,<\/p>\n<p><strong>\u201c50 basis point increases should be on the table at the next couple of meetings.\u201d<\/strong><\/p>\n<p>The crypto market reacted positively to the news, with Bitcoin testing the $40k resistance within the hour of the meeting and Ethereum threatening $3k. Market analyst and YouTuber Kevin Paffrath commented,<\/p>\n<p><strong>\u201cThis is the most comfortable, optimistic, &amp; realistic #FOMC Powell I\u2019ve heard so far. Very clear guidance: It\u2019s not going to be easy, but trying to get a \u201csoftish\u201d landing by bringing inflation down w\/ rates. 50bp now, 50bp next 2, 25 thereafter while we watch for disinflation.\u201d<\/strong><\/p>\n<p>As crypto continues to hold steady amidst wider financial sell-offs, it is perhaps unsurprising that Bitcoin often cited as an inflation hedge, rose on the confirmation that inflation is running too hot. Further, the assurance that higher interest rate hikes above 50bp are unlikely will appease crypto investors.<\/p>\n<p>The leverage ratio for Bitcoin is at an all-time high. With more investors than ever using leverage to invest in Bitcoin, the confirmation that interest rates will not spike beyond expectation will be reassuring. In the short term, this does mean that the cost to buy Bitcoin on leverage may increase. However, the upside potential may outweigh the cost for many.<\/p>\n<p>Source: CryptoQuant<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/bitcoin-climbs-as-fed-confirms-inflation-is-much-too-high\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin rose as much as 3% today as the chair of the Federal Reserve, Jerome Powell, directly addressed the American people, declaring that \u201cinflation is much too high\u201d and \u201cwe have the tools to bring inflation down.\u201d Powell also gave the market some guidance as to what can be expected for the rest of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-3881","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3881"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3881\/revisions"}],"predecessor-version":[{"id":3883,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3881\/revisions\/3883"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/3882"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}