Bitcoin spikes above $22.2K as Fed votes for 75-basis-point rate hike

Bitcoin (BTC), which was a cryptocurrency, was more than $22,000 after the United States Federal Reserve had enacted a major interest rate increase.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Fed: It is “appropriate” to continue hiking after July

Cointelegraph Markets Pro and TradingView data showed that BTC/USD reacted positively to the confirmation that the Federal Open Markets Committee had unanimously voted in favor of raising the Fed funds rates by 75 basis points.

A press release stated that the Committee aims to maximize employment and inflation at 2% over the long-term.

“In support these goals, the Committee decided that the federal funds rate target range should be increased from 2-1/4 to 2/2 percent. It anticipates that there will continue to be increases in this target range.”

Markets expected 75 basis points to be the Fed’s next move. However, commentators began to consider the implications of the central banks’s balance act between taming inflation and avoiding a recession moving forward.

“Watch the Fed embrace data dependence and abandon forward guidance. Tomorrow at 2 p.m., the cycle of hikes will end. The founder and president, Rosenberg Research & Associates, David Rosenberg, said the day before, “Buy bonds.”

Wall Street macro strategist David Hunter, who is a Wall Street macro strategist, predicted continued relief for risk assets. A bet that the recent lows wouldn’t happen again was more pertinent, which could prove to be a boon for Bitcoin bulls due to its ongoing correlation with equities markets.

He stated that no matter what the Fed does today (75 or 100bps), market prices are poised to move higher to S&P 40150-4200, and then a sharp pullback to 3800, before a bigger, more sustained rally to 6000 takes place.” He told his Twitter followers.

“The lows are in. The market is not likely to lower the June lows.”

Spot markets were volatile at the time of writing. BTC/USD fluctuated around $22,000 at the time. Jerome Powell, Fed chair, was scheduled to start a press conference at the moment of writing. His language is apt to add additional headwinds or tailwinds in the market trajectory.

The press release also confirmed that the Committee would continue to reduce its holdings in Treasury securities and agency bonds, and agency mortgage-backed security, as detailed in the Plans for Reducing Federal Reserve’s Size of the Balance Sheet, which were published in May.”

Traders place bets on Bitcoin’s rise

Analyzing market setup, however, the bullish consensus among traders was evident.

Related: Can the Fed stop Bitcoin price from reaching $28K at $28K? Here are 5 things you need to know about Bitcoin this week

Dylan LeClair, analyst, noted that long positions were built on the derivatives exchange FTX during the hours preceding the decision.

Some big $BTC bulls on FTX going into FOMC pic.twitter.com/CWAE0BxGKZ
Dylan LeClair (@DylanLeClair_ July 27, 2022

According to Arcane Research, institutional sentiment is improving, as Cointelegraph reported earlier.

com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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