Treasurys will drop to $70 billion a month from $80 billion, while purchases of government-backed mortgage securities will decline to $35 billion a month from $40 billion.
central bank left interest rates unchanged at close to 0%, but a growing number of analysts in traditional markets are predicting the Fed might have to start hiking the benchmark rate to tamp down inflation at a time when U.S.
Bitcoin’s price briefly dropped after the statement but by press time was essentially unchanged around $62,300.
“On one hand, tightened monetary policy may lead to less rapid growth of bitcoin demand, as many use it to hedge inflation, and less QE in theory means less inflation,” said Joe DiPasquale, CEO of the cryptocurrency hedge fund BitBull Capital.
A growing group of high-profile investors including the legendary hedge fund manager Paul Tudor Jones II and the venture capitalist Peter Thiel have joined many crypto traders in betting that bitcoin can be effective as a hedge against inflation.
But bitcoin also has often been highly correlated with U.S.
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