The Fed announced its interest rate decision today. The rate went up by 25 basis points. Afterwards, Fed Chairman Jerome Powell made statements. We look at the explanations and how they affect the Bitcoin price.
Statement by the Fed Chairman
Money markets were eagerly awaiting the Fed’s statements. Accordingly, the FED increased the policy rate in line with the expectations. The increase was 25 basis points. With this increase, the 5.25-5.50 percent range, which is the highest level of the last 22 years, has arrived. Powell made statements after the decision. Powell underlined that they are determined to reduce inflation. He also stated that future rate hikes will depend on data. “Depending on the data coming in September, we can raise interest rates or we can skip,” the president said.
Looking at the statements of the FED chairman, he stated that no decision has been taken for the upcoming period. On the other hand, he states that the effects of tightening in some sectors are clearly visible. Powell also states that inflation remains high. Accordingly, the latest indicators point out that economic activity is expanding at a moderate pace. Underlining that the decisions are taken from meeting to meeting, Powell states that the data is good, but there is still a way to reach the 2% target.
Gold, Bitcoin and Dollar after Powell’s statements
Everyone is focused on Gold, Bitcoin and the dollar after Powell’s statements. Bitcoin, the flagship of cryptocurrencies, is moving steadily after the announcement. When we look at the price of Bitcoin while writing the article, we see that BTC is trading at $ 29,450. Accordingly, Bitcoin has reacted to the interest rate decision with an increase. The increase is 0.5%.
cryptocoin.com When we look at the gold price, the ounce price of gold is traded at the level of 1,975 dollars. The increase is 0.5%. On the other hand, when we look at the dollar index, we see that there is some decrease. Accordingly, the dollar index has fallen to the level of 100.7. Last month, the Fed took an approach that suspended interest rate hikes. However, we have seen clearly in July whether there will be an increase in the next period. The market expectation was that there would be an interest rate hike in July. Now, with the decision after the meeting in July, the situation has become clear. The approach of the business to the next policy will be seen clearly in the following time periods.
