While most other big coins and tokens dropped following the largely expected news today that the Federal Reserve would keep interest rates where they are, Bitcoin held firm.
Bitcoin (BTC), the biggest digital asset by market cap, is now trading for over $43,471 per coin, according to CoinGecko. That’s a movement of less than 1% in 24 hours. Over the week, it’s up nearly 9%.
This is as the U.S. central bank decided to keep steady on rate policy for the fourth consecutive time.
“In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the bank said in a statement.
“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”
Ethereum (ETH) was hit harder by the announcement—it’s now down 1.5% in 24 hours, priced at $2,339. Most of the top 20 digital coins and tokens took a bit of a dip on the news.
Bitcoin used to largely move with U.S. equities—which dropped following the announcement—but this time was largely priced in.
The S&P500 dropped nearly 1% following the statement’s release; the Dow Jones Industrial Average dropped by 0.1%.
The Fed started aggressively raising rates to try and control 40-year high inflation. Both stocks and crypto—as “risk-on assets”—were negatively hit by the tightening.
BTC has since become more independent.
Edited by Ryan Ozawa.
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Source: https://decrypt.co/215101/fed-rate-news-bitcoin-ethereum
