FED's action | 25 pts hike in Interest | Bitcoin does not even move!

[Flexystar]

This gotta be fun to read for the bitcoin maximalist. Considering the fact that bitcoin has always shown some moves according to the share market and also as per FED's various decisions on the economic circles. They have always lowered and hiked the interest rates in the market depending on the requirements of collections and how stable / unstable is the economy.

The previous rate which was about 4.5% is now surged up by 25 pts making it 4.75%. That may not seem much, but it's huge different for various sectors and it could impact the share market strongly.

Meanwhile, bitcoin which hiked through few weeks, does not get impacted by this news at all. It is kinda disconnected itself from the share market movements and also the FED's footsteps.

This is way way good for bitcoin adoptions since it is what needed in crypto space - a peculiar stability against the decisions of various financial authorities and government bodies. Specifically from the country like USA.

Bitcoin and the rest of the cryptocurrency market has held steady following the Federal Reserve’s announcement today that the central bank has hiked interest rates by 25 basis points.

The move, which aligned with market expectations, raises rates from 4.5% to 4.75%, the highest the federal funds rate has been in decades. The Fed began aggressively raising rates last year in an attempt to cool record-high inflation, which has negatively impacted the value of stocks, equities, and crypto assets.

CoinShares Head of Research James Butterfill told Decrypt  that the Federal Reserve’s statement today added “nothing new to really move the markets.” Federal Reserve Chairman Jerome Powell “has tried to express hawkishness by stating that the job isn't done, but the markets aren't buying it,” he added.

But the U.S. stock market, which digital assets have followed this year and last, dropped then jumped following the news: at the time of writing, the S&P500 gained 0.2%, while the Nasdaq rose 0.2%.

“The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time,” the Federal Reserve said in a statement. 

“Inflation remains too high,” Powell said in a press conference Wednesday. “The job is not yet done.”

Bitcoin Holds Steady as Fed Hikes Interest Rates Again
The Fed has raised rates by 25 basis points, meeting market expectations.

[DaveF]

Actually BTC did pop above $24000 when the announcement was made and then came back down over a number of hours.
With portfolios becoming more diverse and more ways to acquire BTC for more people I can see things that used to move the market more not doing as much. Even now, we can love it or hate it but you can get BTC through your PayPal account. And I would think just a very few of the people that did saw the FED announcement and went to buy or sell their BTC.

Just my view.

-Dave

[Yogee]

Meanwhile, bitcoin which hiked through few weeks, does not get impacted by this news at all. It is kinda disconnected itself from the share market movements and also the FED's footsteps.

Maybe because speculators have grown tired of the constant hike? The FED may continue increasing the rate in the coming months but the crypto market will most likely get used to it. It's probably similar to the days when the bitcoin price was usually affected by the news of any central bank ban or mining seizures until it didn't.

[Lucius]

Perhaps the point is that the market had already predicted some things and started to behave in accordance with these predictions, which means that it was expected that the central banks would be lenient this year when it comes to raising interest rates. Given that this happened, instead of the usual sell-off in the markets, nothing special happened, and the price of BTC is about 2.5% higher compared to the last 24 hours.

If the increase in interest rates is maintained in the 0.25 zone, it is possible that we will no longer see major disruptions in the markets, and that is good for everyone.