Bitcoin Maintains $20,000 As FED Announces Expected Rate Increase
Bitcoin has a slight fluctuation in supply around $20,000 after the announcement of the Fed’s interest rate hike. As expected by observers, the Fed continued to raise interest rates by 0.75% for the fourth time in a row in 2022.
On November 2, the US Federal Reserve (Fed) – the country’s central bank – announced the latest interest rate adjustment. As expected by observers, the Fed continued to raise interest rates by 0.75%, this is the fourth consecutive time in 2022 that the interest rate has been maintained at 0.75%.
Since the beginning of the year, the Fed has had a total of 6 interest rate hikes, bringing the most important parameter for the US economy from 0.25% to 4%. This is the highest interest rate the Fed has imposed since the 2008 economic crisis in an attempt to curb US inflation, which has remained at a four-decade high for many months.
Fed officials will have one more rate adjustment before dawn on December 14.
Bitcoin (BTC) barely fluctuated with the news that the Fed raised interest rates to 0.75% as expected. BTC initially fell from the $20,450 zone to $20,141 within minutes of the Fed data being posted. However, when Mr. Powell said the pace of rate hikes could slow since December, prices showed a positive sign of rising towards $20,800.
However, when the Fed Chairman announced that he would raise the interest rate target higher in 2023, the world’s largest cryptocurrency plummeted to $ 20,048. The price has now recovered slightly to $20,270.
Other major cryptocurrencies are also affected by Bitcoin price fluctuations: Ethereum is down slightly to $1,502, while other altcoins have corrected between 2 and 8% from where they were 24 hours ago.
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