Bitcoin Performance vs. Fed Rate Decisions
The Federal Reserve has a great impact on global financial markets. During yesterday’s Federal Open Market Committee Meeting, the third consecutive rate hike of 75 basis points was announced. While some analysts expected an even higher increase (100 bps), this event badly affected financial markets. Bitcoin was no exception as it heavily correlates with TradFi markets. In the first minutes after the announcement, BTC fell by 4.7%. While predicting the market’s moves after such announcements is hard, looking at the impact of previous events might help to better understand its behaviour.