Bitcoin was trading above the $28k level yesterday prior to the Federal Reserve announcing its interest rate decision.
The Fed increased the interest rates by 25 basis points, a move that many in the market expected.
Bitcoin dipped below the $28k level following the announcement and is now trading above $27,500.
Federal Reserve Increases Interest Rate Once Again
The United States Federal Open Market Committee (FOMC) announced its interest rate decision on Wednesday. The Fed did exactly what many analysts in the market predicted, increased the interest rates.
The Federal Reserve increased the interest rates by 25 basis points as Jerome Powell continued his fight against inflation in the United States. The FOMC said it is committed to bringing down inflation figures in the country to 2%.
However, in a statement issued following the announcement, the Fed acknowledged the banking crisis experienced this month, stating that "recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation.”
The market reacted to the news, with Bitcoin losing its recent momentum. Bitcoin, the world’s leading cryptocurrency by market cap, lost more than 1% of its value over the past 24 hours.
Bitcoin dropped toward the $27,300 level following the announcement but is slowly recovering and is now trading at $27,680 per coin. It is unclear if the recovery can be sustained as Bitcoin is currently experiencing an increase in price without any huge buying volume in the market.
Altcoins are also in the red, with Ether down by more than 2% in the last 24 hours. Litecoin is the only cryptocurrency in the top 20 that is trading in the green zone, as it is currently up by more than 8% so far today.