The US Federal Reserve (Fed) raised interest rates to the highest level in the last 22 years. In line with market expectations, the Fed increased rates by a quarter point to a range of 5.25% to 5.5%. Despite this, the price of the leading crypto Bitcoin rose. This pleased Binance CEO Changpeng Zhao. CZ shared the protection of Bitcoin’s position on his Twitter account.
BTC rose after Fed, Binance CEO commented!
The Federal Open Market Committee of the US Federal Reserve (FOMC) on Wednesday decided to raise interest rates by 25 basis points in line with market expectations, raising interest rates to the highest level in more than 22 years. This puts the current target rate in the 525-550 basis point range. The Fed said job growth has been strong in recent months and the unemployment rate has remained low. He also noted that inflation remained high. Meanwhile, the Bitcoin price tumbled slightly in its initial reaction to the news of the FOMC rate hike. However, it later went up. In the midst of these developments, Binance CEO Changpeng Zhao evaluated the current situation of Bitcoin on his Twitter account. In this context, CZ shared the following, referring to Bitcoin’s solid stance:
Bitcoin is now more stable than stablecoins…
Bitcoin is more stable than stable coins now… 🤷♂️😂
— CZ 🔶 BNB (@cz_binance) July 26, 2023
Meanwhile, the Bitcoin price could potentially reach new highs later this year as the crypto market is likely to become increasingly bullish on the Bitcoin halving around April 2024. Before the Fed meeting, the BTC price barely fluctuated. During this period, BTC remained stable compared to 24 hours ago. It remains to be seen how the crypto market will react to this news.
What’s next for Bitcoin?
As you follow on Kriptokoin.com, Bitcoin and crypto investors were confident that the Federal Reserve would not continue to raise interest rates after the interest rate hike in July, with inflation falling to 3% in June. However, Powell’s statements did not reflect this. Fed Chairman Powell said he could raise interest rates in September if needed. He also stated that they will continue their tight monetary policy unless the data shows otherwise. These statements did not cause a decline in the markets. However, there are some indications that it will increase the pressure on Bitcoin.
Another point that Bitcoin investors will focus on now is applications for spot Bitcoin ETFs. In June, BlackRock filed for a spot Bitcoin ETF. This created a bullish mood in the market. Many investment management firms, including Fidelity, have entered the race for spot Bitcoin ETFs. The SEC is now reviewing these spot Bitcoin ETFs. The SEC has about a year to respond to these applications. While they haven’t been approved yet, the community is confident these ETFs are likely to be approved.
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