The Federal Reserve on Wednesday hiked its benchmark interest rate by another 75 basis points after its regularly scheduled Federal Open Markets Committee meeting.
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As usual, Bitcoin experienced volatility upon the announcement, immediately soaring by over $200.
- The announcement, which happened at 18:00 UST on Wednesday, marks a new policy rate of 3.75%
- Markets expected a 75-point rise prior to the meeting but had priced in a roughly 10% chance of a 50-point rise.
- Immediately after the announcement, Bitcoin rose from roughly $20,400 to $20,600.
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Bitcoin / USD. Source: TradingView - Volatility after a central bank rate decision is commonplace for Bitcoin. The price dropped after the previous FOMC meeting in September when the Fed confirmed one of many 75-point hikes.
- Meanwhile, Bitcoin pumped last week when the Bank of Canada surprised markets with a less-than-expected 50 basis point hike.
- As inflation continues to trend near 40-year highs, the Fed has spent months reiterating that it is fully committed to combatting soaring prices – even if it causes some “short-term pain.”
August CPI came in at 8.2% for September last month – an underwhelming adjustment from August’s numbers. - The United Nations called upon the Federal Reserve in October to slow down its interest rate hikes in October, due to risks that hawkish policy posed to the global economy.
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