Flagship cryptocurrency asset, Bitcoin rallied above $22,000 moments after the United States Federal Reserve, led by Jerome Powell announced a new 0.75% (75 basis point) interest rate hike in a bid to tame the ever-increasing inflation rate.
A press release by the U.S. Fed stated, “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 2.25% to 2.50% and anticipates that ongoing increases in the target range will be appropriate.”
United States’ Federal Reserve Hike Pushes Bitcoin Above $22,000
The rally in the price of Bitcoin after the announcement indicates that market commentators were right as they had already expected that 75 basis points would be the Fed’s next move. Though expected, commentators, however, increasingly considered the implications of the central bank’s balancing act between taming inflation and avoiding recession going forward.