Bitcoin Price Jumps Towards $50K As Fed Chair Speaks

The Federal Reserve said in a statement Wednesday that it will speed up the decrease of its monthly asset purchases starting in January, as inflation keeps rising above its long-run target of 2%. The central bank decided to double the pace of reductions in asset purchases and will now cut it by $30 billion per month, compared to a previous rate of $15 billion.

The Fed expects to cease the purchases of assets by mid-March, months before its previous expectations. The central bank will not raise interest rates until that happens but see three rate hikes coming in 2022. Bitcoin, which was in negative territory right before the announcement, quickly geared upwards to hit $49,500. At the time of writing, BTC is trading above $49,000.

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