New increase in Bitcoin price following news about interest rates in the United States

The price of Bitcoin crossed the 33,500 euro mark last night. The increase started shortly after it was announced that American interest rates would remain the same for the time being (and therefore not rise!).

The interest rate remains the same

The Federal Reserve (FED) kept interest rates stable for the second time in a row. The announcement was made yesterday during the monthly FOMC meeting. The Federal Reserve’s target interest rate remains between 5.25% and 5.5%.

Federal Reserve Chairman Jerome Powell said the financial strength of consumers and small businesses may have been “underestimated” as spending remains high.

“We may have underestimated the balance sheet strength of households and small businesses, and this may be part of that,” he said at a news conference.

He assumes that at some point the bank accounts will be as full as before Corona, but we are not there yet.

December remains undecided

Powell said the central bank made no decision before its December meeting — and even if it decides not to adjust rates for a third day in a row, that doesn’t mean it will be harder to raise rates again.

“The committee will always do what it deems appropriate at the time.”

It also tempers expectations of an interest rate cut. Powell said this has not yet been discussed.

Stocks and Bitcoin respond immediately

Just ten minutes into the press conference, the impact of his words was clear. The S&P 500 rose about 1%, while the Dow Jones Industrial Average rose 0.7%. The Nasdaq performed best, with a gain of 1.3%.

Bitcoin has also had a good run and is up 3% at the time of writing.

After Powell said there was still no word on what would be decided in December, the market fell slightly.