The central bank met many expectations in its decision to raise interest rates by 25 basis points. Other crypto majors are in the red
Bitcoin (BTC) fell below $27,000 after the US Federal Open Market Committee (FOMC) did what was expected on Wednesday, raising interest rates again, this time by a quarter.
The decision reinforces the Federal Reserve’s concern that inflation remains a problem. FOMC is determined to return back to our 2% of us “, the President of food, Jerococo Powell said after their rates.
However, in the reset is followed by the announcement on Wednesday, fomc admitted to the banks near the house and business and measure its economy, work and services. \ “
BTC, CryPertenter is linked to the market value, recently, dropping about 26,815 $ at the same education. Earlier on Wednesday, the price of BTC hit $28,815, hitting its highest level since June 10, as some investors expect the Fed to end its year-long reign of hawkish interest rate hikes. due to the recent bank failure. But the Fed dashed those hopes. Powell’s comments on Wednesday afternoon also coincided with Treasury Secretary Janet Yellen telling lawmakers that the overall bailout “isn’t something we’ve looked at … by any means.”
According to Lucas Outumuro, head of research at IntoTheBlock, the crypto market has “high hopes of not raising rates or extreme words from Powell” based on the last few days of price action. “We got some welcome tips from the spot, but maybe not as expected,” Outumuro told CoinDesk. \”Then Yellen’s comments boosted stocks and key related factors causing the crypto to fall.\” Other market observers are also optimistic about the price of bitcoin in the near future, due to the disaster of the bank, which has damaged confidence in the region. \ “Bitcoin, straddling the line between the main risk asset and a financial lifeboat in the event of all-out banking crisis, has benefited from the recent turmoil and now expectations that the Fed tightening may be across,” James Lavish, managing . partner of the Bitcoin Opportunity Fund, told CoinDesk in an email. However, Lavish said he would still expect volatility as the recent banking crisis continues. “We’re heading into a recession, or worse, a much bigger credit event happens,” he predicted. Samir Kerbage, chief financial officer and managing director of crypto Hashdex, told CoinDesk via email that “although this number is not good for risk assets in general, it is good for bitcoin and gold , because it puts more pressure on the banking sector”.
Vineeth Bhuvanagiri, CEO of Emurgo Fintech, the founder of the Cardano blockchain, said in an email to CoinDesk that “banks are struggling,” adding, “The authorities need to return to large injections of liquidity to make the higher the water. the financial sector. And the bank run forces investors to rethink what it is to have assets, that is, they understand that bank deposits can lead to greater risks.
Ether (ETH), the second largest cryptocurrency by market value, has been moving around the $1,740 level recently, down 3.1% from the same time on Tuesday. Among other major digital currencies, crypto payment platform Ripple’s XRP token fell 11% recently, a reversal from earlier today when XRP jumped 20% on news that Ripple was doing well.
The CoinDesk Market Index, which measures the overall activity of the crypto market, rose recently by 4%.