Federal Reserve Raises Interest Rates, Bitcoin Reacts
- The Federal Reserve increased its benchmark rate by 25 basis points to a range of 3.75% to 4%, marking the first hike since early in the year.
- All members of the Federal Open Market Committee supported the rate increase.
- Bitcoin briefly spiked to $76,000 following the announcement but remained volatile within a support band of $73,500 to $75,600.
- The broader crypto market experienced a decline of approximately 2.18% on the day of the announcement.
The Federal Reserve’s decision to raise interest rates was anticipated by traders, with a high probability priced in before the announcement, as indicated by CME’s FedWatch tool. This move aims to address ongoing inflation concerns while supporting economic activity.
Despite initial volatility, Bitcoin managed to maintain its position above key support levels after the rate hike announcement, reflecting cautious optimism among investors amid broader market declines. ( Source)
