Bitcoin (BTC) experienced instant volatility on November 2 as the US Federal Reserve enacted a fourth consecutive interest rate increase of 0.75%.
The Fed hints at more hikes to com
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD initially fell to $20,200 before momentarily recovering to $20,800.
The Fed confirmed the 0.75% hike, which marks its most intense hike schedule in forty years, in a statement.
“The Committee seeks to achieve maximum employment and inflation at a rate of 2 percent in the long term. In support of these goals, the Committee decided to raise the target range for the federal funds rate from 3-3/4 to 4 percent,” he stated.
“The Committee anticipates that continued increases in the target range will be appropriate to achieve a monetary policy stance that is restrictive enough for inflation to return to 2 percent over time.”
Analysts had long predicted more volatility around the rate decision. At the time of writing, Fed Chairman Jerome Powell had yet to comment on the move, something markets would be watching for signs of trajectory.
“Beware, volatility will remain high during this event, fakes happen before real movement takes place!” Michaël van de Poppe, founder of the trading company Eight, said to Twitter followers.
Nonetheless, the Fed’s decision was widely expected, according to CME Group’s FedWatch Tool, with Cointelegraph reporting on the theory that following the script would still offer cryptocurrencies a chance to rally further.
How long can uploads last?
If Powell hints at possible slower increases or a policy shift, the situation could change dramatically.
“The market recovered ~13% from the lows in the expected 75 bps. Now it’s all about the presser.” summarized the popular CryptoISO account.
“We knew that the Fed had telegraphed an eventual slowdown/pause. It’s not a pivot, but rather a reassessment as the data comes out to see how it flows. 75 bps each time won’t work.”
The statement confirmed that Fed officials had voted unanimously for 0.75%.
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