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Today’s Cryptocurrency Headline
The FEDERAL Open Market Committee (FOMC) released its latest interest rate decision, leaving its benchmark rate unchanged at 0% to 0.25%, as widely expected. The Fed statement also said it would begin its debt reduction program later in November. Monthly asset purchases will fall by $15bn. At that pace, a complete exit from the bond-buying program is expected by June of next year. Monthly purchases of Treasuries and mortgage-backed securities were revised to $70bn and $35bn, respectively, from $80bn and $40bn. In addition, Purchases of Treasury bonds and MBS in December were revised to $60 billion and $30 billion, respectively. The FOMC said the move was “in light of the further substantial progress the economy has made towards its objectives since December”.
Bingbon’s Bitcoin Chart
Jpmorgan reiterated in a recent report that Bitcoin price is on track to hit $146,000 in the long term, if volatility abates sharply. Financial institutions are starting to favor Bitcoin over gold in their portfolios. The target price is about 130 per cent higher than Bitcoin’s current price of less than $62,500 or so. Jpmorgan believes Bitcoin is increasingly competing with gold for investor attention as a hedge against inflation. And it notes that Bitcoin is also a scarce product, meaning that it will rise even if inflation erodes the value of other assets. On the daily chart, Bitcoin is still on a downtrend and is currently consolidating above $60,000.