Bitcoin Tumbles To $27K On Hawkish FED Remarks
By Kapil Rajyaguru
In a widely anticipated move, the U.S. Federal Reserve on Wednesday held monetary policy steady, leaving the range for its benchmark interest rate at 5.25% to 5.50%.
Fed officials also projected keeping interest rates higher for next year at around 5.1%, a significant jump in expectations compared to 4.3% in the June prediction. They also see stronger economic growth for this year, expecting a 2.1% real GDP increase versus a 1% forecast in June. Bitcoin’s price remained flat around $27,200 in the minutes following the central bank’s announcement, but later tumbled some 1% to $27,031 as Fed Chair Jerome Powell said in a press conference that the central bank will do more rate hikes if the economy remains stronger than expected.
Ether was trading around $1620, down by 1.7 % in the last 24 hours.
Powell also said that the majority of Fed members believe “one more rate hike is more likely than not appropriate” to reach the Fed’s goal during the remaining two Federal Open Market Committee (FOMC) meetings. He also acknowledged that the recent trend in inflation is going in the right direction, saying that the last three months’ reading were “very, very good.”
The FOMC’s next policy meeting is set for the start of November. Following today’s events, market participants priced in about a 71.5% chance there would be no rate change at that November meeting and gave a 53.4% odds keeping the rates at the current level until the end of the year, according to the CME’s FedWatch tool.
The global crypto market cap is $1.07T, a 1.09% decrease over the last day. The total crypto market volume over the last 24 hours is $28.72B, which makes a 5.58% increase. The total volume in DeFi is currently $2.36B, 8.22% of the total crypto market 24-hour volume. The volume of all stable coins is now $26.44B, which is 92.07% of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 49.24%, a decrease of 0.04% over the day.
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