The US Federal Reserve's FOMC announced the interest rate increase at its first meeting of 2023.
Cryptocurrency prices fluctuated before the Fed decision. The DXY fell 0.31% from yesterday.
Made the announcement regarding the interest rate increase during its initial meeting of the year 2023.
The cryptocurrency market responded positively when the Federal Open Market Committee (FOMC) raised interest rates by 0.25% at its meeting in February. This occurred in the midst of a comparable market-wide anticipation of a 25 basis point increase, which indicated a slowdown in rate hikes following a string of 75 basis point increases in prior months. The news was made as Fed officials were working to bring inflation down to their objective of 2%. This indicates that increasing economic liquidity was given top priority while tightening screws.
By the new rate increase, the current rate range of 4.25 to 4.50% is replaced with 4.50 to 4.75%. Recall that the upshot of the FOMC meeting was a rate hike of 25 basis points, which had the approval of more than 99% of participants. However, the central bank made a suggestion that there will be more hikes in the following months. Additionally, although it has somewhat decreased, inflation is still high.
The hours before the Fed decision announcement saw significant volatility on the cryptocurrency market. Additionally, the US Dollar Index (DXY) lost money with a 0.31% decline from yesterday. As of this writing, the price of Bitcoin (BTC) is $24.060, up 1.33% over the previous 24 hours, according to CoinGabbar.
Broadly speaking, the 25 basis point decision to increase in line with market expectations not only denotes an optimistic climate but also yields a net benefit for potential investors. In essence, a halt in rate hikes translates to increased economic liquidity and, consequently, more capital available for investment. However, rising concerns about inflation in the United States need taking into account rising costs of living.
During his news conference, Fed Chair Jerome Powell is scheduled to make some comments about the state of the economy.
