The current price of Bitcoin is $43,000 This price was $46,474 yesterday night But due to a piece of news, the price of Bitcoin was declined from 4% to %5 And went to $42,466 What that news was a meeting of Fed, short points of which we will show you 1 number is High inflation On number 2 Balance Sheet is bigger than Normal On number 3 Fed to increase the interest rate On number 4 economy has largely recovered.
There were also other points but these few were important, I will share these points with you And make you understand why because of these points the price of Bitcoin declined The important discussion of the Article, If we check now the first point is High Inflation In 2021, the highest inflation was in the USA .
If I show you here in 2021 the inflation rate in the USA was 6.8% US inflation rate rose to 6.8% inflation in 2021, its highest since 1982 Since 1982 its inflation rate is highest in 2021 People don’t know what inflation is Inflation basically is a decrease in the purchasing power of money Reflected in a general increase in the prices of goods And services in an economy.
Now what happened was when high inflation occurred Fed has put break that the inflation has become very high We will not let it go further and recover the economy And we will stop the money we were spending by printing With which we have to stop the inflation rate Because of this, the price is declined Now second is Balance Sheet is bigger than Normal Now what Balance sheet is Fed print money and give it to people Everyone knows that the US is printing so many dollars And given it to their community due to which their balance sheet got bigger. Now the money they give to the community they want t get it back Fed may start to pare back means take back Pare back its $8.8 trillion balance sheet relatively soon.
After raising its benchmark federal-funds rate Now what the federal reserve wants is the $8 trillion he gave to his community They want to get it back and won’t give more money Now how they will do it? Fed will increase the interest rate When the interest rate will increase economy will recover When the economy will recover fewer people will invest here and more will go for jobs With policymakers indicated growing unease over inflation And the potential for interest rates to start to rise as soon as this March Withing this March the interest rate will increase Bitcoin was down more than 4% to $44,200 Falling from around $46,000 soon after the Fed made the minutes public When Fed made these points public
The price of Bitcoin sharply declined The main point was economy has largely recovered When the economy is recovered more people go in the direction of jobs And do not invest The recovered economy is also the reason for the BTC price decline Meanwhile, the economy has largely recovered, notably the labor market With a record number of people quitting jobs in November and the private sector Adding over 800,000 jobs in December In November most people in the USA quit their jobs But in December the private sector of USA Has added eight hundred lac jobs These were a few points, the minutes they made public And they told that the inflation rate has also increased Now we will stop it Now we will get back the $8.8 trillion we added to the balance sheet We will increase the interest rate to get that back Will recover the economy When these points were out the price of BTC declined from $46,000 to $42000 That is the reason why BTC and Crypto market went down yesterday
