The Federal Reserve on Wednesday hiked its benchmark interest rate by another 75 basis points after its regularly scheduled Federal Open Markets Committee meeting.
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.
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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