Bitcoin Price Rises After FED Announcements

The value of the flagship cryptocurrency bitcoin (BTC) rose and again surpassed the $22,000 mark amid statements by representatives of the Federal Reserve System (Fed) to raise interest rates by 75 basis points. Analysts noted that the volatility of Bitcoin rose immediately after the announcement of the results of the meeting of the Federal Open Market Committee (FOMC).

The cryptocurrency asset rose in price from $21,688 to $22,209 over the next 40 minutes. Then its value was adjusted. The flagship cryptocurrency was worth $22,001 at 21:30 Moscow on July 27, 2022. Experts noted that the traditional stock market also reacted positively to this news. The S&P 500 is up 1.2%, and the NASDAQ 100 is up 2.5% today.

A significant part of market participants feared a 100 basis point hike after a similar move by the Canadian central bank at the beginning of this month. However, many hoped Fed Chairman Jerome Powell would keep his 75-point promise.

Experts assured that the Fed’s efforts are aimed at reducing the level of inflation from which the US has been suffering throughout this year. The June report on the consumer price index (CPI) recorded a value of 9.1%, which is the highest in the last 40 years, and well above the Fed’s target of 2%.

Many financial market experts noted that the actions of the Fed plunge the world economy into a state of even greater recession. This is strongly reflected in the cryptocurrency market.