After the May 4-5 meeting, the Fed increased the interest rate range by 50 basis points. up to 0.75–1% per year. At the press conference, the president fed Jerome Powell refused to take the tightening step further.

Before the meeting, the futures market was at 94.3% expecting the Fed to raise it to 75 basis points on June 15, the highest level since 1994. work. Currently, the figure has dropped to 83.1%.

Powell explained that the committee did not actively consider this scenario because of expectations that inflation would stabilize after jumping to a 40-year high of 8.5%.

“If inflation has peaked, the Fed has some room to be patient. A less aggressive policy would be positive for digital assets.” Joe Orsini, director of research at Eaglebrook Advisors, told CNBC.

Powell dismissed the possibility of a recession in the economy several times and declared that he was ready to fight inflation further.

On May 4, the Fed also decided to start shrinking its balance sheet. Monthly growth will reach $47.5 billion in June and accelerate to $95 billion over the next three months.

Against the background of Powell’s comments, the price of the first cryptocurrency rose by more than $1,000 in half an hour and is currently breaking the $40,000 level. Over the past 24 hours, the growth rate has dropped to 1.2%. At the time of writing, the asset is trading around $39,500.

Bitcoin’s recovery coincided with a surge in Wall Street. The S&P 500 rose 2.99% and the Nasdaq Composite 3.19%. Gold gained 0.72%. The US dollar fell 0.91% against a basket of currencies.

Recall that Arthur Hayes, co-founder of the BitMEX exchange, made the first cryptocurrency drop to $30,000 at the end of the second quarter of 2022, possibly due to the drop in the Nasdaq index.

Glassnode analysts previously announced that the process of redistributing coins from speculative investors to hodlers is complete, allowing bitcoin to bottom out.