For weeks, crypto money investors have been waiting for the interest rate statement to be made by the FED. Minutes ago, the Fed announced its decision. Due to high inflation in America, the FED stopped monetary expansion for a while. As of this evening, a new process has been entered. So how much did the FED give and how will cryptocurrencies be affected?
FED Announces Its Interest Rate Decision
A significant portion of professional investors expected a 25 basis point rate hike from this meeting. With the FED’s statement as of 21:00, the 25 basis point interest rate hike has been finalized. Bitcoin price finds buyers at $ 39.80 at the time of writing. We will be sharing the decisions taken with you instantly on this page, you can reach the last minute information as quickly as possible by refreshing the page. The headlines of the FED’s written statement are as follows;
It was decided to increase the interest rate by 25 basis points.
Year-end inflation forecast 4.3%
End of 2023 inflation forecast 2.7%
At the next meeting, we will begin to reduce assets such as treasury securities held.
Only 1 out of 8 members opposed an increase of 25 basis points. Bullard, who voted against, proposed an increase of 50 bp.
The improvement in hiring and operating activities continues.
Six more rate hikes are expected this year.
Inflation is rising due to energy prices.
Half an hour later, Fed Chairman Powell will appear in front of the screen and share the details of the decisions taken. We will continue to keep you informed of instantaneous statements. After the announcement, the DJ index erased its gains for the day.
Bitcoin and Cryptocurrencies
The 25 basis point increase was already priced in, and there were concerns that the Fed would increase at a higher rate. However, expectations were not exceeded and the FED announced the first rate hike as 25 basis points. Interest should not have been increased for Bitcoin to rise rapidly, but since there is a low increase, the price may hold in this region.
The initial reaction of Bitcoin and altcoins to the interest rate decision was positive. The price, which fell to $39,800 before the news was announced, quickly rose to $40,150. However, after half an hour, the details of the decisions taken by Powell will be announced and the market will begin to price these decisions. We will be updating this page instantly with the details of the decisions shared in the announcement and the possible policy change. You can access up-to-date information as quickly as possible by refreshing the page.