Bitcoin Responds As Fed Continues to Uphold High Interest Rates
As the Federal Reserve of the United States sustains interest rates at the highest they've been in two decades, Bitcoin (BTC) navigates sudden shifts in its value on Sep. 20.
Bitcoin Adjusts Following Federal Reserve's Decision
Bitcoin's price movement reflected the reaction to the interest rate decision made by the Fed, as well as the subsequent remarks by its Chair, Jerome Powell. This data was recorded in real-time by TradingView. The Federal Open Market Committee (FOMC), in a move highly anticipated by the markets, chose to stand by the rates previously settled on in July of this year.
Fed Emphasises its Future Goals
In an effort to realise maximum employment and set inflation at a long-term rate of 2%, the Committee chose to uphold interest rates, the Fed confirmed in a press release. A stunning 99% likelihood of the decision to maintain the pause in rate hike, as shown in data from the FedWatch Tool by CME Group, made this move a foregone conclusion for the markets.
Cautious Tone of the Fed Over Inflation's Future
The Fed's statement failed to assure the markets of easier regulations in the future, simultaneously adopting a cautious stance toward inflation trends. The Committee has assured it will keep a close watch on the economic outlook in relation to incoming information, ready to make adjustments to its monetary policy as needed.
Reactions to Feds Decision and Bitcoin's Predicted Benefit
Michaël van de Poppe, the CEO at trading firm Eight, reacting to the news, forecasted a beneficial impact on Bitcoin as a result of the halt in rate hikes. Subsequent to the pronouncement by the Fed, Powell hinted towards a possible rate hike in the coming year, inducing a sudden bout of volatility in the BTC market.
Bitcoin Holds Steady Following Federal Reserve’s Announcement
The BTC saw some nervous movement as the announcement came, however, its value continued to secure its position above $27,000, uneffected by any considerable shifts within the intraday trading sphere.