• The Federal Reserve raised the federal funds rate by 25bps, taking it to 4.75 – 5%.
• Bitcoin’s price stayed relatively flat at $28,500 following the announcement.
• The Fed expects one more rate hike and dropped „ongoing rate hikes“ from statements.

FOMC Raises Interest Rates

The Federal Reserve has announced that it will be raising the federal funds rate by 25 basis points, taking it to 4.75-5%. This decision was made in order to help support economic growth while maintaining financial stability.

Impact on Bitcoin Price

Despite this increase in interest rates, the price of Bitcoin remained relatively unchanged at $28,500. This suggests that investors remain bullish on the future of cryptocurrency despite any potential changes in monetary policy.

Expectations for Future Rate Hikes

The Fed is expecting one more rate hike before the end of 2023 and has indicated that its median dot plot for this year should reach 5.1%. For 2024, they are expecting a median dot plot of 4.3%. They have also dropped „ongoing rate hikes“ from their statements and have noted that the US banking system is sound and resilient.

What’s Next?

At 6:30 PM GMT today, Chair Jerome Powell will be discussing the new Fed Dot Plot and economic projections with investors and analysts alike. Investors will be keeping a close eye on what he says as his words could have an impact on not only Bitcoin’s price but also other cryptocurrencies as well as traditional markets like stocks and bonds.

Conclusion

The Federal Reserve’s decision to raise interest rates has had little impact on Bitcoin’s price so far but investors should still keep a close eye on what Chair Jerome Powell says during his presentation later today as it could affect market sentiment going forward.

Von Lothar