Bitcoin (BTC) Price Spikes Following Feds agreement to increase interest rates
Bitcoin (BTC) has surged, courtesy of the Feds decision to increase interest rates. The cryptocurrency soared closer to $40,000, and is still sustaining gains at press time. Asides from the big bull’s rise, the entire cryptocurrency market has reacted to the news, as the overall market records a 5% spike.
Feds interest rate hike
On Wednesday, the Federal Reserve increased the interest rates by 50 BPS. The move imitates the Feds previous attempts at curbing inflation in previous times. In the upcoming meetings, the Feds are also expected to mirror this move, by raising interest rates by another 50 BPS. In the meeting after that, another 50 BPS might also be added.
The Chairman of the Fed, Chairman Jerome H. Powell remarked at a news conference on Wednesday, that he recognizes the surge in inflation, as well as the economic effects it is having on the country at large. He then assured the public that the country was well equipped to combat the economic crisis.
Excerpt of his statement from the conference reads;
“Inflation is much too high. We understand the hardship it is causing, and we are moving expeditiously to bring it back down. We have both the tools we need and the resolve that it will take to restore price stability on behalf of American families and businesses.”
Powell added that it is the Feds duty to keep inflation from dominating the country’s economy. He remarked that an essential part of suppressing inflation includes hiking the interest rates. “Higher mortgage rates and higher borrowing rates, thing like that.” He explained.
He wrapped up by asserting that the result of the move will come with its own downsides. He however, still maintains that everyone, specifically people on the lower end of the income distribution, as well as people on fixed income, will be “better off with stable prices.”
The U.S Inflation and its positives for Bitcoin
The current inflation in the United States, which has been dubbed the highest in 40 years, has given free PR to the cryptocurrency industry. Particularly Bitcoin.
The standard cryptocurrency welcomed a significant number of U.S. billionaires, including the likes of Thomas Peterffy, Paul Tudor, and Ray Dalio. They all collectively attested to using Bitcoin as a hedge against the rising U.S. inflation.
- Asset Manager Pushes 45% HYPE Supply Cut, Analyst Calls $100 Target by Year-End
- Bitcoin, Ether ETF Data Signals Huge Selloff Sentiment Ahead of Fed Jerome Powell Speech Today
- Trump’s WLFI Confirms Debit Card & Retail App Launch Amid Partnership With Bithumb
- Vitalik Buterin Addresses Key Myths Over Coinbase L2 Base Custody Concerns
- 21Shares Spot DOGE ETF Secures DTCC Listing as Expert Predicts Dogecoin Rally
- Solana Price Prediction: $836M Whale Transfer Spark Fear of $200 Retest Before 62% Rebound
- Bitcoin Price Prediction: $150K in Q4 as Gold’s ATH Momentum Sets the Tone
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
