Business News Asia
The bitcoin price is down 0.31% this morning (July 21), hovering at $23,413.0.
The downward movement of the bitcoin price occurred after the Dow Jones rose in a narrow range of 47 points on Wednesday (July 20). Wall Street rested after big gains in recent days.
- The Dow Jones Industrial Average rose 47.79 points, or 0.15%, to close at 31,874.84.
- The S&P 500 rose 23.21 points, or 0.59%, to close at 3,959.90 points.
- The Nasdaq rose 184.50 points, or 1.58%, to close at 11,897.65 points.
Bitcoin rose above $23,000 yesterday for the first time in more than a month, spurred by forecasts that the U.S. Federal Reserve (Fed) will not raise interest rates by 1% at its meeting this month.
Bitcoin rose to $23,800, reaching its highest level since mid-June.
Previously, investors had feared that the Fed’s increasing interest rate hikes and balance sheet cuts would strain market liquidity and plunge the U.S. economy into recession.
However, bitcoin remained well below $69,000, the record high reached in November 2021.
Following the release of information suggesting that consumers have scaled back their inflation expectations, investors reduced their expectations for a 1.00% Fed rate hike at this month’s meeting. Some Fed officials favored a rate hike of only 0.75% this month, rather than a significant 1.00% hike.
Analysts believe that the July consumer price index (CPI) suggests that inflation has slowed considerably as oil prices fell sharply in July amid recession concerns.
CME Group’s latest FedWatch tool shows that investors are only 35.6% confident that the Fed will raise rates by 1.00% at its July 26-27 meeting, and 64.4% confident that the Fed will raise rates by 0.75%. %
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Thursday, July 21, 2022