The Federal Reserve has decided to raise interest rates for the first time since 2018.
It has followed the Bank of England by raising rates by 25 basis points in line with market expectations.
Bitcoin is currently trading at $40,106 on the Bitstamp exchange. It has mostly pared its losses after initially dipping roughly 1.5% on the news.
Due to growing inflation, the Fed is under increasing pressure to keep consumer prices under control.
Risk assets, such as Bitcoin, were buoyed by the central bank’s unprecedented pandemic-era stimulus program. However, the Fed is now aggressively dialing back its support in order to get inflation under control.
Source: https://u.today/breaking-bitcoin-unfazed-as-fed-hikes-interest-rates-for-the-first-time-since-2018