According to information shared through a series of tweets, Bitcoin had a period of significant volatility in response to the Federal Reserve’s most recent decision to stop its rate rise campaign. The most valuable cryptocurrency in the world momentarily reached a high of $26,098 before quickly falling to an intraday low of $25,753.
It is now trading close below the $26,000 level as of the time of writing. This sudden rise and fall serves as an example of how susceptible cryptocurrencies are to macroeconomic factors, even when the movements are generally expected.
Notably, market players who were not anticipating a possible rate hike were not surprised by the Federal Reserve’s decision. The Federal Reserve maintained the federal funds rate at 5.25% but hinted at two further rate rises later in the year.
The decision was referred to by analysts like Robert Burgess as a “hawkish hold,” which implied a strong attitude against inflation without taking immediate action.
In a thorough statement, Federal Reserve officials anticipated that inflation will be 3.2% by the end of 2023 and 2.5% by the end of 2024. Additionally, they predict that the core inflation rate will be 3.9% by the end of 2023 and 2.6% at the end of 2024.
The S&P 500 turned negative following the rate decision, indicating that the announcement had a significant effect on the markets.
It is important to note that the Institute of International Finance (IIF) predicts that the American economy will not enter a recession in 2023.
