bitcoin BTC
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The Federal Open Market Committee left the federal funds rate unchanged at its current range of 5.25%-5.50%, as most analysts had predicted. The move marked the fourth interest rate freeze this year after the central bank kept rates steady in November, September and June.
“Tighter financial and credit conditions for households and businesses are likely to put a strain on economic activity, employment, and inflation,” the central bank said in a statement, noting that although inflation has eased, it is still maintaining an upward trend. “Recent indicators show that growth in economic activity has slowed from the strong pace in the third quarter. Job growth has slowed since the beginning of the year but remains strong and unemployment remains low.”
Bitcoin rose nearly 3% after the U.S. Federal Reserve announced another interest rate freeze.
Bitcoin’s Development
The world’s largest cryptocurrency by market capitalization is up nearly 3% in the last 24 hours. $42,428 2 p.m. in New York, according to The Block’s pricing page. Bitcoin has pulled back from an early December rally that saw the digital asset hit a yearly high above $44,300.
The global cryptocurrency market cap is now $1.65 trillion, up 1.2% in the last 24 hours.
The market reacted optimistically to the Federal Reserve’s announcement, with all major stock indexes recording green. The Nasdaq rose 0.6%, the S&P 500 rose 0.6% and the Dow Jones Industrial Average rose 0.5%.
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