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Bitcoin quotes went to the $ 59 thousand mark in the morning, having received a fundamental growth impulse at the end of yesterday. The main event on Wednesday was the release of the Fed and inflation protocols that determine the future monetary policy of the United States.
The document showed the obvious concern of the Fed’s bankers about the increase in consumer prices, which reached 5.4% annual growth in September, breaking through a 13-year high.
During the year, the financiers of the White House predicted the temporary nature of the increase in inflation, expecting a fall in November-December. Yesterday’s Protocols contain a confession
possible sustainable growth of consumer prices.
Despite the inflationary risks, the Fed will try to delay or mitigate the tightening of monetary policy. Such a move raises the value of Bitcoin and stimulates the flow of funds into the DeFi industry.
Low US interest rates do not allow banks to increase the yield on deposits, which is eaten up by inflation, which in turn devalues the fiat currency. Shifting money into stocks is not an option when the Fed switches to a tight monetary policy, which will cause an outflow of institutional speculators and a drop in stock indices.
Bitcoin, the only alternative to the stock market. The cryptocurrency has been growing for 12 years, repeatedly overtaking stock indexes in terms of profitability. In 2021, BTC showed significant stability in moments of sell-offs on stock markets.
DeFi is an industry, a relatively new alternative to obtaining risk-free returns for investors. Credit and investment protocols, DEX exchange liquidity pools, platforms with various types of yields, allow you to get two-digit and three-digit annual returns on funds frozen in smart contracts (TVL).
After yesterday’s publication of the Fed Minutes, the TVL chart set a new record of $213 billion and this figure continues to grow.
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