Both the Bitcoin price and the stock prices fell sharply last night. This came after the news that the Federal Reserve approved a rate hike, in addition to which the chairman made his announced plans to continue raising interest rates next year to combat high inflation.
The Federal Reserve has raised interest rates by 0.75 percentage points four times this year. It did this to bring inflation under control, which is currently at a 40-year high in the US. This time, the US central bank raised interest rates by 0.50 percentage point. That was expected by most analysts, but the chairman’s statements that the central bank is likely to continue to raise rates was a blow to investors. Immediately after chairman Jerome Powell’s speech, the BTC price fell by about $600 from $18,300 to $17,700.