Bitcoin cryptocurrency breaks through $ 24,000 at night

On the night of February 1 and 2, bitcoin broke through the $ 24,000 level. This happened against the backdrop of the Federal Reserve’s (US Federal Reserve) announcement that it would raise its key policy rate by 25 basis points to 4.5%-4.75% per annum.

By the way, this is the eighth consecutive increase in the base rate, which is now at its highest level since 2007. The cryptocurrency market reacted positively, with global capitalization increasing by more than $ 40 billion. According to the latest data from Coinmarketcap, the total capitalization of the crypto sector now stands at $ 1.09 trillion, which is 3.88% more than the previous day.

During the Fed meeting, the head of the department, Jerome Powell, noted that the latest indicators received by the regulator «indicate a moderate reduction in costs and an increase in production.» According to the agency, the number of jobs has increased in the United States, and the unemployment rate is gradually declining. At the same time, inflation has slightly decreased, but still remains at the highest level.

«Russia's war against Ukraine is causing huge human losses and economic hardship, and is contributing to global uncertainty. TheUS Federal Open Market Committee (FOMC) pays great attention to inflationary risks,» the press release issued after the Fed meeting said.

As a reminder, on January 12, the BLS (Federal Bureau of Statistics) published data on inflation in the United States. The value of the consumer price index for December was 6.5%. The core inflation rate dropped to 5.7%. According to Powell’s statement, the FOMC set the inflation target at 2%. Raising interest rates in the long term should help achieve this goal.

The cryptocurrency market reacted to the Fed’s decision with little volatility. According to CoinGecko, the quotes of digital assets from the top 100 list did not show significant dynamics.

At the time of writing, bitcoin is trading at $ 23,820, with a market capitalization of $ 459.2 billion.