The Federal Reserve (Fed) has set the interest rate at 0.75% raised to 2.5%. That was expected, but the bitcoin (BTC) price fell by more than 14% in the past week in the run-up to the decision. Immediately after the news was announced, however, BTC made a nice jump!
Bitcoin price rises after new interest
The Fed had already been expected to raise an interest rate of 0.75%. Still, there was a small fear that it would be a larger increase of 1%. That scenario did not materialize, which may contribute to the fact that bitcoin is reacting positively to the news for the time being.
Since the news was announced, bitcoin has been up just under 2%. Over the past 24 hours this is an increase of almost 6%. The rise follows several days of declines.
At the time of writing, bitcoin is trading at a price of $22,102 on crypto exchange Coinbase. On the Dutch trading platform Bitvavo you buy 1 bitcoin for a price of €21,940.
BTC analysts react to interest rate hike
Still, there is some surprise that the crypto community is relieved that it is ‘only’ an increase of 0.75%. This is how Psycho, a trader, writes Twitter:
“People celebrating 75 bps raise like it’s bullish, twitter has gone crazy lol”
Another analyst named Kaleo has the bullish hats on and expect a squeeze can lift the BTC price a lot higher. After the news about interest rates, his forecast, which he shared two hours ago, stands.
So far, so good. pic.twitter.com/yrFxddL9pP
— KALEO (@CryptoKaleo) July 27, 2022
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