The Federal Open Market Committee (FOMC) announced that it would halt interest rate increases while the price of Bitcoin increased.
Wednesday, the Federal Open Market Committee (FOMC) announced its decision to halt interest rate hikes, as widely anticipated by the financial markets. Later in 2023, the central bank indicated that additional rate hikes are conceivable.
In May 2023, the Consumer Price Index (CPI) showed a 0.1% month-over-month increase, indicating that the inflation rate in the United States was decreasing. In the meantime, the Bitcoin price’s initial reaction to the Fed’s decision is favorable.
Bitcoin Price Response to Fed Determination
In its initial response to the rate-hike halt, the Bitcoin price maintained sideways momentum. Nonetheless, the hints of potential rate hikes later in the year could result in a pump-and-dump scenario for Bitcoin.
According to reports, traders would closely monitor the Fed’s message regarding the possibility of rate increases at the upcoming FOMC meeting. It was stated that market price fluctuations could be influenced by how the US central bank forecasts its future decisions.
However, the majority of US Fed officials anticipate rate reductions in 2024. Following the FOMC decision, the S&P 500 Index fell sharply by 0.45%, while the Nasdaq Composite Index fell by 0.52%.
