How Bitcoin reacted to the highly expected FOMC session in January

How Bitcoin reacted to the highly expected FOMC session in January

After a further meeting of the Federal Open Market Committee (FOMC) On Wednesday, the Federal Reserve agreed to raise its reference interest rate by 25 %

Bitcoin did not react to the news with the usual enthusiasm and continued to act slightly over $ 23,000.

• The interest rate increase between 450 and 475 basis points-the highest level since the end of 2007. The increase of 25 points corresponded to the market expectations and was milder than the increase of 50 points in December.
• Bitcoin was traded for around $ 23,000 before the announcement and then saw little action. It briefly rose to $ 21,150 and then returned to $ 23,050 at the time of writing.
• Bitcoin has risen by 37 % since last month after it has increased in response to the upward movement alongside technology stocks from December.
• In view of the decline in inflation, the market participants began to suspect that the FED could be ready to carry out a "pivot"-to slow down or withdraw their interest rate increases and thus facilitate investments.
• In fact, the S&P 500 has risen by 6 % since the beginning of January, while Nasdaq has risen by 11 %. However, the Dow Jones Industrial Average fell by about 1 %
that day
• Nevertheless, the Federal Reserve has made no sign that it intends to reduce interest rates in the near future.
• a jp Morgan-analyst asked the fed in the past month, but expected more Interest increases by May, the Fed could keep interest rates over 5 % by the end of 2023.

Bitcoin/USD. TradingView.