Bitcoin has risen in price by $ 2,500 per hour.

Bitcoin (BTC) rose sharply at the start of the US trading session. The growth catalyst could be the decision of the Federal Reserve to leave the discount rate unchanged.

The first cryptocurrency consolidated in a range below $55 000 for most of the day on Wednesday March 17th. However, at the beginning of the American trading session, the bulls took over and sent Bitcoin to intraday highs of $57 600. At the time of writing, BTC is trading at $ 57 500, but the uptrend continues to gain strength.

The reason for the growth of bitcoin was the decision of the Federal Reserve to leave the discount rate unchanged, despite the strengthening of the economy and rising inflationary expectations.

Following a regular meeting of the Federal Open Markets Committee, the Central Bank raised its forecasts for economic growth rates for 2021 from 4.2% to 6.5%, but at the same time announced that it did not plan to raise the rate at least until the end of 2023.

Moreover, the regulator promised to continue buying bonds on the open market for at least $120 million. These purchases will provide the financial system with additional liquidity and stimulate economic growth.

“The recovery is moderate, with economic activity and labour market indicators heading higher, but the sectors hit hardest by the pandemic are still severely weakened. Inflation is kept below 2%, ” the accompanying statement reads.

Inflationary expectations have also risen. The FOMC expects personal consumption spending to rise 2.2% this year and decline to 2% in 2022.

Improved economic forecasts added optimism to investors and bitcoin rallied higher along with other risky assets such as stocks. In addition, cryptocurrency is often viewed as a hedge against inflation and the demand for it grows along with inflationary expectations.

The Fed’s decision to keep stimulus despite the economic recovery could lead to overheating and higher price pressures. Bitcoin, on the other hand, was originally created as an asset with a predetermined supply volume and built-in deflationary characteristics.

Experts are confident that large-scale injections of liquidity into the economy are fuelling a bullish trend in the cryptocurrency market.