Since the last FOMC statement on May 3, when Powell raised interest rates by 25 basis points but gave pigeon-toned speeches during his press conference, the price of Bitcoin had plummeted as stocks rose.
Bitcoin Price Rising in the First Place Drops After Two Additional Rate Increase Signals
According to the interest rate decision announced today, the FED decided to keep the interest rates constant after a long hiatus. With this news, the price of Bitcoin made a sudden increase in the first place, but later, after the FED announced that it plans to make two more interest rate hikes this year, it again fell below $ 26,000 and is trading at around $ 25,800 at the time of this writing.
New estimates suggest policymakers favor an additional half-point increase this year; this would push borrowing costs to around 5.6%, higher than most economists and investors expected.
"In determining the extent of additional policy tightening that may be appropriate to return inflation to 2 percent over time, the Committee will consider cumulative monetary policy tightening, delays in monetary policy's impact on economic activity and inflation, and economic and financial developments," the Fed said in a statement.
Currently, the eyes of all traditional and crypto money markets are turned to the speech of FED Chairman Jerome Powell, which will start at 21:30. As Bitcoinsistemi.com, we will publish the important points of this talk.
*Not investment advice.