Breaking: Fed Raises Interest Rates by 25 Bps, Bitcoin Price Reacts

To the surprise of most, BTC actually surges. For now. For the first time in three years, the United States Federal Reserve raised the benchmark interest rates by 25 bps. In an unanimous decision 12-0, the Committee decided to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent, in support of its dual mandate. This was quite expected given the recent developments, including the strong US labor report from a couple of weeks ago and the hawkish speech by Fed Chair Kevin Warsh. Moreover, the inflation data from last week gave the central bank even more reasoning to do so. The price reaction from BTC was quite surprising as the asset actually surged by a grand and a half to $76,500 where it was stopped, for now. The asset crashed hard yesterday after the Senate failure of the CLARITY Act but today’s move shows that the Fed hiked was priced in. All eyes are now on the next speech by Warsh. About the author Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about...