The World’s largest cryptocurrency by market capitalization reacted favorably to the recent resolutions of the latest FOMC meeting.
On the first days of May, the Federal Reserve announced yet interest rate hike of 0.25%, making the U.S. reach its highest rate in over 20 years.
Bitcoin is currently valued at $29,079, boasting a near 3% increase since the announcement.
How Raises Affected Crypto
In the span of a year, the Fed raised interest by 10 consecutive times, finally reaching around 5% to 5.25% rates.
During that time, the cryptocurrency market suffered heavily during the reoccurring hikes. The year 2022 was remarkably bad for digital assets, and a good portion of these losses can be attributed to the increasing rates led by the Federal Reserve.
Around the end of that year, the cryptocurrency market started reacting favorably to the announcement of a “slowing down” of interest rates. Meaning that when the raises dropped from 0.75% at its highest point to 0.25% in December, crypto assets started going through a more favorable market movement.
Powell Hints At a Pause
During the FOMC meeting, Jerome Powell also spoke about what can investors and businesses expect in the near future.
At one point, the Federal Reserve’s Chairman said that the Fed has not decided on a halt in interest rates yet — but the sole fact that he is speaking about it is already enough to make analysts theorize about what to expect until the end of the year.
In fact, Powell himself added to that by claiming that the change in language terms about the future of American interests is already “meaningful”.
Moreover, if the Fed decides to halt interests by mid-to-late-2023, the cryptocurrency market will have everything to on a rise, specially considering that 2024 is the next BTC halving.