Breaking: US Fed Keeps Interest Rate Unchanged, Bitcoin Price Drops
Crypto Market News: The Federal Open Market Committee (FOMC) on Wednesday announced its decision to pause interest rate hikes, as expected widely in the financial markets. The central bank signaled that additional rate increases are possible later in 2023. This comes at the back of the easing inflation rate in the United States in May 2023, as the Consumer Price Index (CPI) came out to have risen 0.1% month over month. Meanwhile, the Bitcoin price is showing bullish signs in its initial reaction to the Fed decision.
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Bitcoin Price Reaction To Fed Decision
The Bitcoin price maintained sideways momentum in its initial reaction to the rate hike pause. However, the hints of possible rate hikes later in the year may result in a pump and dump scenario for Bitcoin. Earlier, CoinGape reported that traders will be keenly looking at the Fed’s message around possibility of rate hikes in the next meeting in FOMC. It was said that the market price movements could be decided by how the US central bank forecasts about its upcoming decisions.
However, a majority of the US Fed officials see possibility of rate cuts in 2024. Meanwhile, the S&P 500 Index took a sharp fall of 0.45% following the FOMC decision, whereas the Nasdaq Composite Index fell 0.52%.
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