On Wednesday, the Federal Reserve of the United States announced a rate increase of 75 basis points. The Federal Reserve Board has now raised interest rates aggressively for four consecutive meetings.
As Bitcoin’s Value Soars, the Price of Cryptocurrencies Rises
Meanwhile, Bitcoin’s (BTC) price surged after the FOMC decision, signaling a bullish shift in the cryptocurrency market. The 24-hour volume weighted average price of Bitcoin on CoinMarketCap is $20,664, up 1.10 percent from the previous day. Bitcoin’s value increased by 0.88 percent in the minutes following the announcement of the judgment.
The Fed panel acknowledged the negative impact of the Russia-Ukraine conflict on international economies. There has been an increase in inflation and a dampening of international economic activity as a result of the conflict and related events.
The Fed has stated that it expects the most recent increase in interest rates to have a moderating effect on inflation. The report deemed the action “suitable in that it is restrictive enough to gradually reduce inflation to 2%.”