Bitcoin in decline: the FED increases its rate by 75 points in the face of inflation

Descent into hell ! – The US Federal Reserve (FED) has decided toraise your ratesat the meeting held on June 15, 2022. This announcement was not without consequences for the sphere of cryptocurrencies and in particular the price of Bitcoin (BTC).

>> A safe platform to buy your cryptos? Join PrimeXBT (affiliate link) <<

Fed hikes rates to fight inflation

Following the meeting of June 15, 2022, the FED has announcement an increase in interest rates 75 dots basic. Thus the new key rate will be set between 1.5% and 1.75%. It should be noted that this increase is the largest since 1994.

Moreover, in the press release the FED justified its decision by the fight against inflation. The press release states that:

“The Committee is firmly committed to bringing inflation back to its 2% target. »

In the USA, inflation is up to about 8.6%. It is clear that the FED is ready to curb this inflation, at all costs, even if it means provoking a recession.

Additionally, the FED has stated that it intends to:

“Reduce its holdings of Treasuries, agency debt and agency mortgage-backed securities, as outlined in plans to reduce the size of the FED’s balance sheet released in May. »

In addition, this announcement by the FED plunges the Bitcoin (BTC) price up to $20,032thus breaking the symbolic bar of 21,000 dollars.

The high volatility of the financial markets and the crypto market is part of the risks to accept when investing. Besides, Michael Saylor, the founder of MicroStrategy, reminds us in his speeches, this is part of the game of investment.

No offense to regulators, there are still platforms that preserve your privacy. Register now on PrimeXBT, the exchange without KYC (affiliate link).

Leave a Comment