Bitcoin Falls to $19k as Federal Reserve Announces 75 BPS Rate Hike
Following the two-day Federal Open Market Committee (FOMC) meeting, the Fed raised its benchmark interest rate by another 75 basis points.
Bitcoin’s price reacted erratically to the news, dropping $1,000 shortly after the news.
- The rate hike, announced at 18:00 ET on Wednesday, raised the central bank’s new policy rate by 3.0% to 3.5%.
- Most investors expect a 75-percentage-point rate hike ahead of the meeting, but the market has priced in about a 15 percent chance of a one-percentage-point hike.
- Just 1 minute after the announcement, Bitcoin fell from around $19,700 to $18,700. At the time of writing, it has recovered to around $18,946.
- Volatility following the Fed decision is familiar territory for Bitcoin.price Rapid volatility Federal Reserve Chairman Jerome Powell reiterated his commitment to tackling inflation after speaking at Jackson Hole last month.
- Lowering inflation has been the theme of Fed policy for months as inflation hits record highs throughout 2022. CPI in August was 8.3% Last week – beat analysts’ expectations.
- Tighter monetary policy caused stocks and cryptocurrencies to plummet throughout the year.Bitcoin is now down 70% from its November high of $69,000, while Nasdaq It is down 28% so far this year.
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