{"id":20265,"date":"2023-07-26T18:58:24","date_gmt":"2023-07-26T18:58:24","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-traders-eye-feds-powell-as-fomc-hikes-rates-to-22-year-highs\/"},"modified":"2023-07-26T18:58:26","modified_gmt":"2023-07-26T18:58:26","slug":"bitcoin-traders-eye-feds-powell-as-fomc-hikes-rates-to-22-year-highs","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-traders-eye-feds-powell-as-fomc-hikes-rates-to-22-year-highs\/","title":{"rendered":"Bitcoin traders eye Fed\u2019s Powell as FOMC hikes rates to 22-year highs"},"content":{"rendered":"
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Bitcoin\u00a0shifted toward $30,000 on July 26 as the Federal Reserve delivered a fresh interest rate hike.<\/p>\n

BTC\/USD 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Bitcoin tames volatility ahead of Powell press conference<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView showed Bitcoin’s (BTC)\u00a0price performance strengthening after the Federal Open Market Committee (FOMC) took rates 0.25% higher.<\/p>\n

While still fairly quiet, the largest cryptocurrency was still yet to react to a press conference from Fed Chair Jerome Powell due at 2.30 pm Eastern Time.<\/p>\n

This is traditionally the main cue for risk asset volatility, with markets closely watching Powell\u2019s language for signs of future policy changes.<\/p>\n

\u201c25 BPS is baked in so any deviation from that should yield a logical reaction, but #FED Chair #JPow goes out of his way to telegraph intentions and avoid surprises so don\u2019t expect any change from the forecast,” monitoring resource Material Indicators wrote<\/a> in a Twitter post before the announcement. <\/p>\n

\u201cAll market participants will listen to the subtle nuances of what is typically a carefully crafted, post announcement statement and those words will move markets.”<\/p><\/blockquote>\n

Confirmation of a hike of 25 basis points still brought benchmark interest rates to their highest level since 2001.<\/p>\n

In an accompanying press release, the FOMC further hinted that should its roadmap toward 2% inflation become hindered, it would be prepared to take additional measures.<\/p>\n

\u201cThe Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5-1\/4 to 5-1\/2 percent,\u201d it stated. <\/p>\n

\u201cThe Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.\u201d<\/p><\/blockquote>\n

Fed funds rate chart. Source: Federal Reserve<\/em><\/figcaption><\/figure>\n

Suspicions over \u201cunanimous” FOMC<\/h2>\n

The move, while bringing rates to 22-year highs, was nonetheless overwhelmingly priced in across markets, with almost 99% odds that it would go ahead.<\/p>\n

Related:\u00a0Bitcoin gets $28K \u2018plunge protection\u2019 with BTC price due new volatility<\/em><\/strong><\/p>\n

A look at CME Group\u2019s FedWatch Tool, meanwhile, showed less certainty that the next FOMC meeting in September would yield a repeat.<\/p>\n

Fed target rate probabilities chart. Source: CME Group<\/em><\/figcaption><\/figure>\n

Discussing the implications, financial commentary resource The Kobeissi Letter noted that while every FOMC member had voted for the latest hike, this may not speak to harmony over policy at the Fed.<\/p>\n

In a social media reaction, it argued<\/a> that \u201cbetween every meeting all Fed officials publicly disagree with each other.\u201d<\/p>\n

\u201cIs the Fed really as united as they make it seem?\u201d it queried.<\/p>\n

Magazine: Should you \u2018orange pill\u2019 children? The case for Bitcoin kids books<\/em><\/strong><\/p>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n