TL; DR
-
Between ~7am and ~3:30pm ET on Wednesday, Bitcoin jumped from around $40.9k to $42.7k, adding a cool $36 billion to its market cap.
-
Around 2 p.m., J-Powell announced that the Fed would not raise rates any further at this time.
-
When the economy is healthy, investors feel more comfortable taking risks (on things like crypto).
Full story
If you woke up on Wednesday morning and thought:
“Gee whizz, Bitcoin is much cheaper than last week, maybe I’ll buy it?”
First: who else says “gee whizz”?
(Have some self-respect and say “holy moly” like the rest of us).
Second: if you had waited until mid afternoon to make your purchase you would have received a very rude shock.
Because during that time (between ~7am and ~3:30pm ET) Bitcoin jumped from around $40.9k to $42.7k, adding a cool $36 billion to its market cap.
If you need somewhere to blame, we’ve got you!
You can write a strongly worded letter to Jerome Powell, head of the Federal Reserve.
Because around 2 p.m. J-Powell announced that the Fed would not raise rates any further at this time.
What kick started this little flywheel:
If interest rates don’t go up → our mortgage and credit repayments won’t go up → which means whatever disposable income we have can be spent elsewhere → which (in theory) should stimulate the economy.
And when the economy is healthy, investors feel more comfortable taking risks (on things like crypto).