Banks able to serve crypto customers, BTC up 3%

Bitcoin rebounded after the comments of the president of the American federal reserve Jerome Powell at the FOMC meeting reported that the banks were authorized to serve cryptographic customers.

Cryptographic markets initially had a deaf reaction to the decision of the federal committee on the market open on Wednesday, January 29, to maintain unchanged interest rates. The Fed maintained its federal fund rate of 4.25% to 4.50%, citing “somewhat high inflation”, as analysts predicted.

Bitcoin (BTC) increased by 0.5% after the Fed released its FOMC minutes. The upward trend accelerated at 3%, pushing BTC over $ 103,500 before the United States negotiation session.

Answering a question related to crypto, Powell declared That American banks are “perfectly capable” to serve cryptographic customers, provided they meet the requirements of risk disclosure. He pointed out that customers of legally compliant dediction are not food policies, responding to concerns related to the so-called “Operation Choke Point 2.0”.

“Excellent crypto regulations would be useful,” added Powell.

He also reiterated that the American central bank cannot legally hold BTC, which prompted senator Cynthia Lummis to propose to change the law if necessary.

The digital asset markets overthrew green after Powell’s remarks while the main American capital indices closed the day in the red.

Unchanged federal interest rates divide the feeling between bulls and short -term bear. Bulls argued that Bitcoin could increase in February, as he did in eight of the last 12 February. They also hypothesized that President Trump’s pro-Crypto position could provide additional support for the BTC and the wider market.

The Bears, on the other hand, argued that static interest rates could dissuade new BTC capital entries and related products, such as funds negotiated in exchange for Wall Street bitcoin.

Meanwhile, reports suggest that President Trump encouraged Powell and the Fed to implement lower interest rates. However, Powell said he hadn’t had any contact with Trump so far and has not commented on rumors’ request.