Meanwhile, the US markets have closed again. We look at the live Bitcoin price and the prices of the top 25 crypto. Then we look at the interest rate decision that the Fed made today. How does this work out? What does the FED interest rate decision mean for Bitcoin and what do we expect next?
We begin, of course, with the live Bitcoin price and the prices of the top 25 crypto.
Bitcoin price and prices top 25 crypto rise after FED interest rate decision
At the time of writing, the live Bitcoin price is quoting EUR 377,175.24 ($40,895). This is 3.66% higher than when the US market closed yesterday.
The prices of the top 25 crypto coins are also rising rapidly. Only the stable coins and Terra (LUNA) with -043% are currently posting red numbers. Otherwise, the top 25 crypto currencies are seeing price increases, with Cosmos (ATOM) recording the largest gain with +6.88% in 24 hours. On the site of Tradeincrypto.com you can analyze live crypto prices 24 hours a day.
Today the Fed made a historic interest rate decision
Many financial markets remained expectant in anticipation of today’s FED interest rate decision. Inflation is running high. A record 7.9% was measured in February, while the goal is to keep inflation at no more than 2% per year. Before the war in Russia, then, intervention seemed logical, but the war made much otherwise.
Evidently not for the Fed, as they made the decision the market was expecting, a 0.25% increase in interest rates. They also announced that this year 6 more increases should be taken into account. How high these will be is of course unknown, but of the 9 member FED committee, 8 voted for the final increase. One committee member wanted to raise interest rates by 0.50%. You can follow the latest news and analysis throughout the night here.
What does the interest rate decision mean for Bitcoin and other crypto?
Basically, higher interest rates mean that the economy will slow down. In principle, this causes investors to take on less risky investments and sell their riskier investments. We saw this happen immediately after the announcement of the interest rate hike. Bitcoin dipped below $40,000 and bond yields rose rapidly. However, the Bitcoin recovered quickly.
However, now that six further interest rate hikes have been announced, this will lead to more turmoil in the crypto market in the long term. Also, investors do tend to move away from riskier investments more quickly in the future, especially if interest rates are raised by larger increments.
What do we expect from the Bitcoin exchange rate in the short term?
We saw today that Bitcoin managed to close above this psychic limit on two occasions from below $40,000. Still, analysts are not yet comfortable with a further bull run.
We already saw this afternoon that another resistance lies at $42,330.00. If the market closes the day (formally of course, actual trading continues 24/7) above $41,250, a hefty further rise is likely and the market may break through this resistance.
If the price fails to do so, the currency will remain in the consolidation zone. The longer BTC continues to consolidate, the greater the chance of price declines. Still, there seems to be no reason for concern. This technical analysis shows that the bids of the consolidation bandwidth is around $37,750 and that is where the market now seems to remain (well) above.
Of course, we will continue to follow the market. Tomorrow we will be absent for one day, but on Friday we will of course inform you again with our crypto lunch and Bitcoin update.
Want to stay up to date with the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”