Following the expected 25 basis point increase in interest rates by the US Federal Reserve, the price of Bitcoin (BTC) and other cryptocurrencies briefly rose.
Price of BTC Muted Because the U.S. Federal Reserve Is Raising Rates
Following the expected 25 basis point increase in interest rates by the US Federal Reserve, the price of Bitcoin (BTC) and other cryptocurrencies briefly rose.
Gains were brief, though, as the statement did not do anything to quell expectations that the Fed will soon end its string of interest rate hikes.
BTC went up to as high as $29.65K, however it soon retraced and is now trading at $29.4K. Ethereum (ETH) gained to $1,885, but also traded back down to $1,873 at the time of writing.
Despite the gains, Bitcoin is still below its peak from July of $31,800 and is generally unaffected by macroeconomic factors that have in the last year led to more pronounced market reactions.
Federal Reserve Chairman Jerome Powell said:“We think we’re going to need to hold, certainly, policy at restrictive levels for some time, and we’d be prepared to raise further if we think that’s appropriate.”
The Dow Jones Industrial Average maintained its longest daily winning streak in six years as equity markets were mixed as investors speculated about the potential of another rate hike later this year.
