After the Federal Reserve raises interest rates…Bitcoin soars to $23,000
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Answer After the Federal Reserve raises interest rates…Bitcoin soars to $23,000
Bitcoin volatility increased again after the last FOMC meeting.
Bitcoin is up nearly 10% in response to the US central bank’s announcement that it will raise another 75 basis points in interest rates.
Yesterday and before the announcement, the bitcoin was trading at levels of $21,500, while immediately after the announcement, the bitcoin rose to the levels of $22,000, to continue rising and reach its current levels at $23,100 (at the time of publishing the article).
The fluctuation and movement of the Bitcoin price coinciding with the FOMC meeting is not the first of its kind, as the price of Bitcoin became volatile immediately after the many FOMC meetings throughout the year.Read:A cryptocurrency trader has been sentenced to prison for fraud and theft of $5 million
Sometimes, the volatility is short-lived.
In other cases, price increases have long-term effects on the cryptocurrency markets and the stock market.
Bitcoin has been closely correlated with stocks throughout the year (although it has fallen slightly in recent months), especially when responding to Federal Reserve policy.
The S&P 500 is up 1.2% while the Nasdaq 100 is up 2.5% on the day.
A large part of the market started to fear that a 100 basis point hike in the interest rate was already imminent.
I expected The majority rose by 75 points, which actually came in line with expectations that Powell confirmed during the FOMC press conference.
The Fed’s efforts to raise interest rates are aimed at calming the severe inflation that has plagued the country throughout the year.
The June CPI report came in at 9.1%, a 40-year high and well above the Fed’s 2% target.
However, concerns are also spreading that the Fed’s efforts could push the economy into recession.Read:The biggest scams and arrests that took place in the crypto market in 2019
Several major crypto companies have already announced mass layoffs in June and have continued into this month, citing macroeconomic pressures as the reason.
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Bitcoin maintains $21,000 level ahead of FOMC interest rate announcement
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