The Federal Reserve has reduced interest rates by 0.25%, which reports the upper limit of the federal interest rate by 4.25%, and the decision to reduce interest rates to its lowest levels since November 2022 has been in accordance with the waiting market expectations after the emission of low data on the labor market and a relative drop in inflation rates.
The Federal Open Market Committee (FOMC) reduces the target beach of interest rates of 25 basic points with low employment data and an increased risk
This decision reduces the target beach of interest rates from 4.50% to 4.25%, recording the first reduction in the range of interest rates of the federal reserve for this year after Jerome Powell, president of the Federal Open Market Committee (FOMC), resolution with 10 other members, while the opposition voice of Stephen Eye came. Stephen I. Miran in favor of a reduction of 0.5% more, and federal officials have allocated this stage to the indicators of slowing down economic growth, low employment and increasing negative risks that threaten the labor market.
It should be noted that the Committee declared in its declaration that it “seeks to reach the maximum amount of employment and to stabilize the rate of targeted inflation in 2%,” adding that the atmosphere of uncertainty on the prospects for the future “is always high”.
Recent data has shown that the US labor market is faced with increasing pressure, because the data published this week showed that the supply of the economy was lower than that declared at the start of around 911,000 jobs in the last 12 months until March, while the August report showed that the pace of employment growth almost stops, because June has recorded the first monthly loss of jobs in more than 4 years. had previously warned against the “retirement risks” which threaten the labor market, and can worsen in the event of high employment rates.
This coincided with the drop in inflation rates compared to the same period of last year, but it remained higher than the 2% of the federal reserve, while the inverse sale price index came without expecting the month of the following month, while the PPI index went from 0.7% in July to 0.1% 3.3%. Consequently, this reading, which is lower than that planned, improve the expectations of the federal reserve, reduces interest rates this week, which prompted the price of bitcoin to increase in anticipation of the decision, while traders betting on federal subscribers a less strict monetary policy.
Political pressures have also imposed the same thing on federal decisions, because former American president Donald Trump continued to attack Powell and accuse him of “very late”, calling for a more daring reduction to support the housing sector and reduce government funding costs. Trump described the federal president on social networks as a “complete disaster”, calling for higher interest rate discounts, so that Miran – that Trump has appointed – reassured himself by his position by voting in favor of a reduction of more than 0.5%.
This decision comes in the context of customs definitions that have prompted inflation rates to increase in recent months, as evidenced by the high consumer price index (IPC) to 2.9% for the month of August after having decreased to 2.3% in April, to detect the division in the ranks of economists on the question of whether this increase in customs tariffs is perhaps temporary or the hand of the economy with an inflationary stagnation, A scenario that the federal reserve tries to avoid by balancing growth with the stability of interest rates.
Despite the political quarrels surrounding the meeting, those responsible for the federal reserve expected slightly faster economic growth than previously expected, while maintaining unemployment and unchanged inflation forecasts, because their long -term expectations indicate a progressive reduction path for interest rates at 3% in the middle, with additional limited dates for 2026 and 2027.
As for the Chipto markets, the repercussions are still clear; While Bitcoin-BTC and Ethereum-Eth are new repetitions thanks to more facilitating monetary policies, gains can decrease the increase in political tensions and the risk of continuous inflation; Traders can refer to Powell’s press conference, which was held at 2:30 p.m. to discover the instructions of the Federal Reserve in the coming period.
Liquidation of $ 105 million in speculative transactions on the Crapeto market after the Powell press conference, in the middle of the Bitcoin Bitcoin Prize (Bitcoin)
Carbetto transactions have been liquidated by a number of $ 105 million in one hour after the Powell press conference today, while increasing speculators (bulls) have undergone losses of $ 88.8 million, against $ 17 million for the drop in speculators (BEARS) due to the sudden fluctuations that have led to a decrease in the value of the sector CROPHY. Bitcoin returned by 1.2% in the last 24 hours, after which it adjusted approximately $ 115,089, a drop of approximately 0.8% and without its highest levels recorded at $ 124.128 per 7%.
Yesterday, the Bitcoin price exceeded the mark of $ 117,000, recording its highest level in 4 weeks before Powell declarations were ravaged by market stability, in the midst of a warning of analysts from a large note of $ 108,000 to $ 112,000, which threatens a wave of deeper correction if the general atmosphere transforms into negativity.
Despite the high performance of the Bitcoin price in September, during which he increased by 8%, his best performance in this month since 2012, traders are currently monitoring the level of support of $ 115,800 with remarkable anxiety.
This comes in the midst of experts in technical analysis that the price movement constitutes the negative and emerging model, which is one of the artistic models indicating a descending reflection, with objectives at $ 114,400 and $ 113,200 if the support levels are broken. Analyst Arslan Ali commented on the drop in reading the RSI index (RSI) to less than $ 113,000 “, which means that the market passes with a critical tour in the effect of the Powell tone on the origins of risk, to face the traders with a weekend with certainty in the middle of the bitcoin test of his main support.
Bitcoin Price bitcoin
Bitcoin price movements recently express contradictory artistic signals, in the middle of the analysts’ division between the weighting of emerging or descending scenarios; After the success of the prize by entering the dialing of the corner descending in early September, its movements settled in an emerging chain in an indication of the renewal of the momentum, which prompted it to settle the highest averages of its main movement (MAS), in the midst of expectations of its launch around $ 126,000 as soon as the levels of support are consistent, and the closest to the GALE 110,000, of the initiative.
As for the short term, the image seems more negative; On the graphic graphic for two hours, it is clear that the price of Bitcoin is recently broken, a strong Wing motif directed downwards, which opens the way to reflecting the path to a decrease, in particular since reading the RSI index (RSI) decreased to 43 in an indication of the loss of the momentum without reaching the excessive range of sale. Many analysts estimate that the level of $ 115,800 represents the decisive battle line, because its rupture can lead to an extension of the drop of decline at $ 114,400, and perhaps at $ 11,200, where the simple medium movement index provides support for 200 days (SMA-200).
In order for the Bulls to restore the initiative, the Bitcoin price will have to penetrate the barrier of $ 117,300 and start exceeding $ 118,500 to $ 119,000. Currently, the technical state suggests a drop in predictable duration, and analysts are checked if buyers can pay the price to maintain the level of support or risk with a deeper correction.
The post-Federal reserve reduces interest rates to 4.25%. Is Bitcoin-BTC’s price for a start or decrease before weekends? APPLERDIRST on Arab Cryptonews.
