Bitcoin Price Prediction as Federal Reserve Interest Rate Decision is Announced – Time to Buy?
Amidst the US Federal Reserve's latest policy meeting on Wednesday, Bitcoin price finds itself in a consolidation phase near the $29,300 mark.
The much-anticipated announcement revealed a 25 basis points (bps) increase in the policy rate, setting the federal funds rate within the range of 5.25% to 5.5%.
As the decision aligns with market expectations, investors are closely observing its potential ramifications on the cryptocurrency market.
With all eyes on Bitcoin's response to the Fed's move, traders are pondering whether this development presents an opportune time to make strategic moves within the cryptocurrency space.
As anticipated, the Federal Reserve decided to raise its benchmark interest rate by 0.25 percentage points on Wednesday.
This move comes after the central bank refrained from a rate increase in June to assess the impact of its previous aggressive monetary tightening measures.
However, to bring inflation back to the targeted 2%, Fed officials concluded that further rate hikes were necessary.
As a result, the fed-funds rate target now ranges from 5.25% to 5.5%, reaching a level not seen since early 2001.
The Federal Reserve's decision to raise interest rates to a 22-year high can potentially have significant ramifications for the cryptocurrency market, including Bitcoin.
Higher interest rates often attract investors towards traditional financial assets, which could lead to a short-term decrease in demand for riskier assets like cryptocurrencies.
As the Fed continues tightening monetary policy to combat inflation, some investors might shift their focus to less volatile and more stable assets.
This shift in investment behavior might temporarily dampen the demand for cryptocurrencies, causing Bitcoin's price to
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