The US Federal Reserve raised interest rates by 0.75 percent on Thursday, the single largest increase in three decades. However, the central bank has indicated that additional growth is coming towards the end of this year.

Bitcoin fluctuated significantly after the Fed announced a rate hike, which was a desperate attempt to tackle rising inflation. This action represents another record-breaking policy rate increase, which makes the price of BTC a roller coaster.

Bitcoin is trading at 22 22,613 as of this writing, down 25 percent from last week, according to data compiled from Koinzeco on Thursday. After reaching 17 21,222 at approximately 17:55 UTC, BTC fell as low as 20,069.

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Powell says the labor market is tremendously tight, and inflation is far too high. Image: Justin Lane/EPA.

Bitcoin volatility after the Fed hike

According to analysts, Bitcoin is experiencing volatility when the central bank announces interest rate decisions. However, the actual effects of the disclosure are usually not noticed after a few days.

Why Bitcoin production costs are a very low down

Cryptocurrency markets are still heavily influenced by the macro mood, according to Noel Acheson, head of Genesis Trading Insights, quoting Yahoo Finance.

Acheson says the relief rally is quite welcome in light of recent developments in the cryptocurrency market.

The Fed announced a 0.5% rate hike last month, the highest increase in 22 years. After the release, Bitcoin had a temporary rise, but in the days that followed, it kept pace with the stock market.

This increase, on the other hand, could be just the opposite. In light of last Friday’s 8.6% CPI figures, some believe that the market has already caused the rate hike.

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Crypto total market cap at $937 billion on the daily chart | Source: TradingView.com

Powell says inflation is too high

Bitcoin and the cryptocurrency market as a whole have taken a huge hit over the past few weeks as investors have sold risky assets.

“The current picture is clear,” Jerome Powell, chairman of the Federal Reserve, told a news conference Wednesday after announcing the decision. The labor market is very tight, and inflation is very high. “

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Since the horrific forecast of a possible 100 basis point rate hike did not materialize and the market got exactly what it had hoped for from the June 15 Federal Open Market Committee (FOMC) meeting, the altcoin market also saw a moderate price increase.

Bitcoin miners continue to sell as outflow spikes again

The digital asset market has become highly integrated with the equity market. Today, Bitcoin has followed the stock market, as it has for most of this year: both the S&P 500 and the Dow Jones Industrial Average sank in the news before recovering.

Featured image from Cryptor Trust, chart from TradingView.com

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