Bitcoin’s Price Rises Modestly After Fed Raises Interest Rates
Bitcoin’s price saw a modest increase following the U.S. Federal Reserve’s decision to raise interest rates by 25 basis points. The target range for the federal funds rate is now 5.25%-5.5%. The cryptocurrency, which has the largest market capitalization, rose 0.3% to $29,354. It has been trading within a narrow range between $29,000 and $31,500 for over a month.
Key Points:
- Fed raises interest rates by 25 basis points
- Bitcoin’s price rises 0.3% to $29,354
- Fed warns about elevated inflation and aims to bring it down to 2%
- Fed Chair Jerome Powell suggests further rate hikes could come in September
- U.S. stocks show mixed reactions after the announcement
The Federal Open Market Committee’s decision marks the 11th rate hike in 17 months, as the central bank remains committed to reducing inflation. Fed Chair Jerome Powell stated that they will carefully assess the need for further rate hikes in the upcoming meetings. Meanwhile, U.S. stocks had varied responses, with the Nasdaq dipping 0.3%, the S&P 500 rising 0.1%, and the Dow Jones Industrial Average rising 0.4%.
Hot Take:
The Federal Reserve’s decision to raise interest rates had a modest impact on Bitcoin’s price. However, the cryptocurrency’s ability to maintain a steady trading range suggests that investors may be anticipating the effects of the rate hike. As the Fed continues to monitor inflation and consider further rate hikes, the crypto market will likely remain attentive to any potential impacts on Bitcoin and other digital assets.
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