Fed's Interest Decision and Bitcoin (BTC): US Stock Markets Are On The Rise!

The Federal Reserve (Fed) did what it did for months in the 2008 global crisis, as the economist Erkan Öz put it, and after the outbreak of a new type of coronavirus (COVID-19), which occurred in Wuhan, China, leading to the death of more than 6,000 people worldwide. interest rates almost 0, and announced that it would go for $ 700 billion in monetary expansion.

The drop in oil prices due to the drop in oil demand due to the coronavirus epidemic caused a crisis in the markets, and stock markets worldwide crashed last week. For this reason, the Fed’s interest rate decision was curious. Dow Jones, S&P 500 and Nasdaq indices completed the week with record rises after the worst day closure of 33 years (March 12, 2020) was declared a national emergency in the USA.

While the Fed almost zeroed the interest and went for a $ 700 billion monetary expansion, the Fed’s intervention in the market has had the expected effect for now. Dow Jones Stock Exchange Industry Index increased by 2 thousand points, S&P 500 increased by 203 points, while Nasdaq increased by 673 points.

Read This Now: Bitcoin crashes below $ 8,000 for the first time since June of this year

On the other hand, crypto money markets started to rise shortly after Fed announced. Bitcoin (BTC) went up to $ 5,823, but this rise was not this long-standing. The biggest cryptocurrency has dropped again hours after the announcement and is trading at $ 5,275 at the time of writing.

For Bitcoin price, which has been acting in parallel with global exchanges for a while due to the coronavirus epidemic, the rise in the US stock exchanges may be a significant bullish sign, and who knows, if things go as expected, we can see that the biggest cryptocurrency has exceeded the $ 6,000 level.