The eyes of the global markets were on the interest rate decision from the US Federal Reserve (FED) today. Before the decision, there was a great silence in the crypto money markets. In the end, as many market experts predicted, the Fed increased the federal funding rate by 75 basis points for the fourth consecutive year. This development caused volatility in Bitcoin price.
Bitcoin (BTC) price dropped as low as $20,210 on Bitstamp before rising sharply. After initially falling sharply after the Fed’s interest rate announcement, Bitcoin slowly recovered and rose from around $20,400 to $20,600 immediately after the announcement. According to CoinMarketCap, BTC price is currently at $20,694.54, up 1.20% in 24 hours.
Cardano (ADA), XRP, Shiba Inu (SHIB) and other altcoins follow the lead cryptocurrency. But the central bank pointed to a potentially slower pace of rate hikes going forward.
In addition, Nick Hotz, Arca research vice president, made the following assessment about the decision:
“Inflation remains sticky and high, so rate hikes will continue but pace of increase will slow […] Any sign that the Fed will loosen (in monetary policy) will be considered bullish in the short term for digital assets.”
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.