One day after the U.S. Federal Reserve boosted its benchmark interest rate for the first time in more than three years, bitcoin (BTC) is having a quiet session, currently trading at $40,800.
- Traditional markets and cryptocurrencies both sold off in the immediate aftermath of Wednesday’s rate hike announcement by the U.S. central bank, but recovered those losses and more by the end of the day.
- Speaking at the post-meeting press conference, Fed Chair Jerome Powell said the U.S. economy is strong enough to withstand a number of rate hikes this year, and doesn’t see a recession on the horizon.
- “I think that the result of this FOMC meeting is bullish for the market in the short-term, as the market gained clarity on the Fed raising rates and there were no big surprises,” said Marcus Sotiriou, analyst at U.K.-based GlobalBlock. The Federal Open Market Committee (FOMC) is the Fed's monetary policymaking body.
- Motiriou, however, does worry that rate hikes initially may not do a lot to cool inflation, setting up markets for more pain if the Fed feels the need to get more aggressive in its money tightening policy.
- Checking other popular cryptocurrencies, ether (ETH) and solana (SOL) are both outperforming bitcoin by a bit today, each up about 2%.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.