The U.S. Federal Reserve is going to announce the latest interest rate decision at the Federal Open Market Committee (FOMC). After the meeting, Jerome Powell, Fed’s Chairman, will announce a possible pause in the growth of interest rates, which stands at 5.25 percent at the time of writing. But how can this affect Bitcoin (BTC) in the short and long term?
US Fed to Announce Interest Rate Decision – Is Bitcoin Affected?
Jerome Powell, Fed’s Chairman, is going to announce the interest rate decision of the U.S. Federal Reserve in the next few hours. This could be the first time that interest rates remain unchanged in the U.S. since the beginning of 2022.
It is worth taking into consideration that this has been one of the most aggressive tightening cycles in the history of the country, which has an impact all around the world as well. Due to this reason, the market is expecting the central bank to stop its tightening cycle and keep interest rates unchanged.
When Jerome Powell announced the beginning of the tightening cycle after the massive printing that took place after 2020’s COVID-19 pandemic, Bitcoin started its bear trend. The bear trend continues up until today and there are no clear signs this has ended.
At the time of writing this article, Bitcoin has a price per coin of $27,200 and a market capitalization of $530 billion. In the last seven days alone, the price of Bitcoin grew by over 3% according to CoinGecko. It is just a matter of time to see what could happen to Bitcoin in the short and long term after the Fed’s upcoming announcement on interest rates.