Bitcoin jumped above 22.2 thousand dollars on the background of the Fed vote
Bitcoin (BTC) rose above $22,000 on July 27 after the US Federal Reserve adopted another significant interest rate increase.
Hourly BTC/USD candlestick chart (Bitstamp). Source: TradingView
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reacted positively to confirmation that the Federal Open Market Committee (FOMC) unanimously voted to raise the Fed funds rate by 75 basis points.
The press release says that the Committee aims to achieve maximum employment and inflation at 2% in the long term.
"In support of these goals, the Committee has decided to raise the target range of the federal funds rate from 2-1/4 to 2-1/2 percent and expects that a further increase in the target range will be appropriate."
Markets were already expecting the Fed's next move to be 75 basis points. Commentators, however, have increasingly considered the consequences of the central bank balancing between containing inflation and preventing a recession in the future.
The day before, David Rosenberg, founder and president of Rosenberg Research & Associates, said: "Look at how the Fed abandons forward-looking recommendations and rate commitments and accepts dependence on data. This cycle of increases ends tomorrow at 14:00. Buy bonds."
Meanwhile, Wall Street macro strategist David Hunter predicts a further decline in risky assets. A more appropriate bet was that the recent lows would not be repeated, which is a potential boon for bitcoin bulls, given the ongoing correlation of the cryptocurrency with stock markets.
"Regardless of what the Fed decides today (75 or 100 basis points), the market is ready for an upward movement to the S&P 4150-4200, and then, possibly, for a sharp, short pullback to 3800, before a larger and more sustained rally to 6000 begins. Minimums have been reached. The market is unlikely to overcome the June lows"
Now spot markets are characterized by volatility, as the BTC/USD rate fluctuated around $ 22,000.
"In addition, the Committee will continue to reduce its holdings of Treasury securities, agency debt obligations and agency mortgage-backed securities, as described in plans to reduce the size of the Federal Reserve's balance sheet, which were published in May."
Analyst Dylan Leclair noted the creation of long positions on the FTX derivatives exchange a few hours before the decision was made.
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