Bitcoin experiences a slight dip following Federal Reserve's interest rate hike

BTC took a small hit of around 1% after the US central bank increased the federal funds rate by 25 basis points. The Fed's chairman, Jerome Powell, mentioned that the bank had removed language indicating more rate hikes in future meetings. After the widely anticipated interest rate hike of 25 basis points (bps) by the US Federal Reserve, the price of Bitcoin (BTC) fell slightly below $28,500. This increase now puts the federal funds rate within a target range of 5% and 5.25%. According to CoinDesk data, the leading cryptocurrency by market capitalization recently traded around $28,350, which is a decrease of approximately 1% in the last 24 hours. The Fed's recent decision was the 10th rate hike in 14 months. In the statement that accompanied the rate hike, the Fed's Federal Open Market Committee (FOMC) stated that "tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation". The committee also said that it would pay close attention to inflation risks. While Powell noted that no decision on the rate hike pause had been made, the current statement did not signal any additional rate hikes, unlike previous statements. Powell explained that the assessment of the appropriateness of additional policy firming would be an ongoing one, meeting by meeting, citing uncertainties in credit conditions. Crypto investors have been struggling to determine how recent bank failures and regulatory disputes regarding cryptocurrencies may impact the market. Edward Moya, senior market analyst at foreign-exchange market maker Oanda, noted in a Wednesday statement that "Bitcoin still remains anchored, unlikely to rally above the $30,000 level until the US gets some regulatory clarity."

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