The Federal Reserve delivered its highly anticipated interest rate decision on Wednesday. In it, the bank decided to hike interest rates by 0.25% as was widely expected. This marked the first time America’s interest rates jumped above 5% in more than a decade.
Bitcoin prices reacted mildly to the interest rate decision. The coin remained in a consolidation phase at the $28,000 while American stocks pulled back after the Fed Chair warned that the bank had not deliberated about pausing or cutting interest rates later this year. Other cryptocurrencies remained relatively unchanged. So, what does this decision mean for Bitcoin and AltSignals (ASI)
Federal Reserve interest rate decision
Wednesday’s Federal Reserve decision was in line with what I had written in this article. The only change was that the rate hike was unanimous despite this week’s collapse of First Republic Bank. Other regional banks like PacWest and Western Alliance are also on the verge of collapse.
However, there are reasons to be hopeful that the Fed has now reached the end of the rate hiking cycle. First, the bank is now under pressure from a team of progressive politicians who believe that the bank wants to lead to layoffs in the economy. They argued that inflation will continue to fall even when the Fed decides to pause its hikes. Also, tgey doubted whether rate hikes will solve the inflation challenges facing the economy.
Second, the Fed will not want to break more things in the economy now that the regional banking and commercial real estate industries are on the verge of failure.
Third, the Fed was trying to prevent irrational exuberance in the financial market by sounding a bit hawkish. If Powell had sounded dovish, we would have seen a return of the pandemic era, where investors were buying anything. Recently, we have seen traders pump key meme coins like Soi and Pepe Coin.
What the decision means for crypto
Therefore, cryptocurrencies like Bitcoin and Ethereum will do well after the latest interest rate decision by the Federal Reserve.
The main reason is that the Fed has now reached the end of its hiking cycle. As it embraces a new normal, we could see market conditions change in the next few months. Historically, Bitcoin tends to do well when the Fed is dovish.
The other reason is that the banking sector is still in trouble, which will lead to a higher demand for key safe havens like gold and Bitcoin. BTC has emerged as a better haven than gold this year, rising by more than 80%. Therefore, if the condition conditions, we could see BTC prices jump.
Further, there are challenges in the commercial real estate sector as I wrote in this report. Office buildings in key cities like New York and San Francisco are going through one of their worst contractions in modern times as demand wanes. These challenges could also force the Fed to change its tune.
Why AltSignals (ASI) is a good buy
AltSignals is set to benefit from this shift in the financial market. For starters, AltSignals is a company that provides actionable signals to thousands of traders from around the world.
The platform, which is highly profitable, is now working to boost efficiency using the blockchain and artificial intelligence technologies. The goal is to use this technology to make the platform more accurate and easier to use as you can read in this white paper.
AltSignals has now raised more than $696k in its first phase of the token sale. The developers hope to raise over $1 million in this phase. After this, the price of each token is set to jump when the token moves to the second phase.
As we saw with Metacade, the developers will then list the AltSignals token in key exchanges, starting with Uniswap. They will then list it in other centralized exchanges like BitMart, Binance, and Huobi, which will likely push the token much higher.
AltSignals listing will happen at a time when the Fed has paused its interest rates. As a result, there is a likelihood that the token will rise, which makes it wise to buy at the current level. In fact, most recently listed tokens like Arbitrum, Sui, Metacade, and Pepe have all jumped sharply.
However, investing in all tokens, including ASI is a risky thing, meaning that you should allocate your funds wisely. You should avoid buying AltSignals with all your funds. Instead, you should set aside a small portion of your funds that you can afford to lose. You can buy AltSignals tokens here.
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