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Bitcoin has been the main beneficiary of the Federal Reserve (Fed). On the last 24 hours increased a 3% to reach $23.7 thousand. Meanwhile, Ethereum is winning almost 6% and trading around $1,674.

With a gain of 39.4 % this month, bitcoins ended January in its best month since a profit of 40 % in October 2021. It was also his best January since 2013. optimistic January value in a decade.

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“Bitcoin has benefited more than most from the surge in market optimism since the beginning of the year,” said Craig Erlam, market analyst at OANDA. "In addition, it has retained those earnings in the helicopter business quite impressively."

and the meeting of the Federal Reserve yesterday not only did not change the perspectives, but seemed to confirm them, given the expectations that the end of the trajectory setting is close.

On Wednesday, the Federal Reserve raised interest rates in 25 basis points, in line with the market expectations.

Subsequently, the institution president, Jerome Powell, gave a press conference in which he left several messages, but the main one to which the markets is his affirmation that the process of disinflation in the economy.

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“Now I think that for the first time we can say that the disinflation process has begun. We can see that and we have seen it in commodity prices so far," the Fed chair said.

Of course, he added that it is premature to declare victory over inflation. In fact, the market expects at least two more interest rate hikes this year.

Fed Effect: Bitcoin Hits a 5-Month High

There is also a feeling of euphoria in Other Cryptocurrencies. focus of growth of Polygon's 14%, BNB (7%) and Cardano (6%).

Still, many experts aren't sure how long this recovery could last, while others are more optimistic.

“Historically, when interest rates rise moderately, average returns and bitcoin rise much more than traditional assets, as speculators quickly buy back when credit and cash are more readily available,” CoinDesk expert Jodie Gunzberg concluded. .

Conclusion: optimism for the future

the market of Bitcoin has been volatile in 2020, but it seems that the cryptocurrency is finally on the rise.

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After reaching a maximum of five months, Bitcoin is now approaching $ 24,000 Y seems poised for continued growth.

This increase in value can be largely attributed to recent news that the Federal Reserve will continue with its current policy of interest rates close to zero in 2021.

This news has encouraged investors to put their money in risky assets such as Bitcoin instead of traditional stocks or Treasuries.

as more people realize of this trend, it is likely that more people will invest in Bitcoin, which could lead to even higher prices in the future.

This is great news for those who hold on to any investment in cryptography they may have and gives them reasons for the optimism about what lies ahead.