Bitcoin Falls to $19k as Federal Reserve Announces 75 BPS Rate Hike
After the two-day Federal Open Markets Committee (FOMC) meeting, the Federal Reserve raised its benchmark interest rate by another 75 BPS.
Bitcoin prices reacted erratically to the news, dropping $1000 moments after the announcement.
- The hike, published at 18:00 UST on Wednesday, takes the central bank’s new policy rate from 3.0% to 3.5%.
- Most investors expected a 75-point hike at the meeting, but markets priced in about a 15% chance of a full percentage point rate hike.
- Just 1 minute after the announcement, Bitcoin fell from around $19,700 to $18,700. At the time of writing it has been restored to around $18,946.
- Volatility following Federal Reserve decisions is familiar territory for Bitcoin. price Fluctuating rapidly It follows Fed Chairman Jerome Powell’s speech in Jackson Hole last month, where he reiterated his commitment to tackling inflation.
- Reducing inflation has been the focus of Fed policy for months, as inflation has hit historic highs through 2022. August came to the CPI 8.3% Last week – more than analysts expected.
- Both stocks and cryptos have fallen throughout the year due to tightening monetary policy. Bitcoin is now down 70% from its November high of $69,000, when Nasdaq Has been down 28% since date.
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