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Bitcoin Bolsters over $22k, Fed votes for 75 basis point rate hike

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July 27th saw Bitcoin (BTC) price over $22,000, coming after the US Federal Reserve enacted a major interest rake hike. 

Market data has shown that BTC/USD is reacting positively to the FOMC’s unanimous vote to drive up Fed fund rates by 75 points.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run,” a press release stated.

“In support of these goals, the Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate.”

The 75 point mode by the Fed was to be expected. Many commentators tried to consider the implications of the central banks attempt to tame inflation and avoid a recession in the near future. 

“Watch the Fed abandon forward guidance and rate commitments and embrace data-dependency. This cycle of hikes ends at 2 pm tomorrow. Buy bonds,” David Rosenberg, founder and president of Rosenberg Research & Associates, stated.

David Hunter, Wall Street macro strategist, gave a forecast for continued relief for risk assets. He also is inclined to believe that recent lows will not be met again, which may mark a potential boon for Bitcoin traders because of Bitcoin’s correlated movement with traditional markets.

“No matter what the Fed decides today (75 or 100bps), the market is poised for a move higher to S&P 4150–4200 & then maybe a sharp, short pullback to 3800 before a much bigger, more sustainable rally to 6000 gets underway,” he told Twitter followers.

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