BTC Reacts to Fed Rate Decision
The price of Bitcoin (BTC) experienced volatility on September 20 as the United States Federal Reserve announced that it would maintain interest rates at their current levels. Traders closely watched BTC price action in response to the rate decision and comments from Fed Chair Jerome Powell.
No Surprise Rate Hike Pause
Market expectations were already set for the Fed to pause rate hikes, with a 99% probability of this outcome based on data from CME Group's FedWatch Tool. The FOMC made the official decision to keep rates unchanged at the levels set in July.
Future of Inflation Remains Uncertain
While the Fed maintained its current stance on monetary policy, the language used in the press release indicated caution regarding the future of inflation. The committee acknowledged that it would closely monitor economic information and adjust policy if necessary to achieve its goals.
Expert Predicts No More Rate Hikes
Trading firm Eight's CEO Michaël van de Poppe expressed his belief that there would be no further rate hikes in the future. He suggested that this development would be favorable for Bitcoin.
Powell's Projections for Rate Changes
Fed Chair Powell hinted that there could be another rate hike in 2023. He provided projections for the federal funds rate, stating that if the economy followed expectations, the rate would be 5.6% by the end of this year, 5.1% by the end of 2024, and 3.9% by the end of 2025.
BTC Holds Above $27,000
Bitcoin's price remained stable above $27,000 following the Fed's rate decision, with no significant movement outside of the recent trading range.
Please note that this article does not provide investment advice. Readers are encouraged to conduct their own research and make informed decisions.
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