Just When You Thought Things Were Cooling Off...BOOM! Prices Pump
TL;DR
Between ~7am and ~3:30pm ET on Wednesday, Bitcoin jumped from about $40.9k to $42.7k, adding a cool $36B to its market cap.
Around 2pm, J-Powell announced that the Fed would not be increasing interest rates any further at this time.
When the economy is healthy, investors feel more comfortable taking risks (on things like crypto).
Full Story
If you woke up on Wednesday morning thinking:
"Gee whizz, Bitcoin is way cheaper than it was last week, maybe I'll buy?"
First up: who says "gee whizz" anymore?
(Have some self respect and say "holy moly" like the rest of us).
Second: if you waited to make your purchase until mid-afternoon - you would've gotten a very rude shock.
Because in that time (between ~7am and ~3:30pm ET) Bitcoin jumped from about $40.9k to $42.7k, adding a cool $36B to its market cap.
Now, if you want somewhere to point the blame, we've got you!
You can write a strongly worded letter to Jerome Powell, head of the Federal Reserve.
Because at around 2pm, J-Powell announced that the Fed would not be increasing interest rates any further at this time.
Which kick started this little flywheel:
If rates don't go up → our mortgages/credit repayments don't go up → which means any disposable income we have can be spent elsewhere → which should (in theory) boost the economy.
And when the economy is healthy, investors feel more comfortable taking risks (on things like crypto).