Bitcoin Price Prediction: BTC Dips Nearly 3% in Response to Federal Reserve's 25 Basis Point Rate Hike
Bitcoin's current trading price is 29,464, indicating a slight 0.50% increase on Thursday.
However, the cryptocurrency faced a notable dip of nearly 3% in the last seven days in response to the Federal Reserve's decision to raise the federal funds rate by 25 basis points.
Despite the economy experiencing moderate growth, the central bank's move to tighten monetary policy has led to some downward pressure on Bitcoin's price.
Investors and traders are closely monitoring the market's reaction to this rate hike as it may influence the cryptocurrency's future performance.
Despite moderate economic growth, the Federal Reserve recently increased the federal funds rate by 25 basis points.
This decision was expected and already priced in, and the next day, BTC saw some improvement.
The goal of the rate hike was to keep inflation under control, as per the latest report from the Federal Open Market Committee (FOMC).
Powell, the Fed chair, mentioned that a rate change in September is possible, but a pause is also a possibility.
The committee has not made any decisions on future meetings yet.
However, there could be some selling pressure on July 27 in the cryptocurrency market due to the European Central Bank (ECB) predicted to increase interest rates by another 25 basis points, even though the Eurozone is officially in a recession.
The Japan Central Bank is also debating whether to hike interest rates, which could lead to a sweltering Friday.
The recent 25 basis point increase in the federal funds rate by the Federal Reserve, despite moderate economic growth, had a mixed impact on Bitcoin's price. While the decision was anticipated and already factored in, BTC saw some improvement the following day.
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