Bitcoin Price Prediction as Federal Reserve Interest Rate Decision Announced

cryptonews.com:

During the European session, the Bitcoin price prediction remains bullish following the Federal Reserve's interest rate decision. After three consecutive "jumbo" rate hikes of 0.75 percentage points each, the Federal Reserve finally announced another rate increase on Wednesday, this one a full 0.75 percentage points higher in an effort to slow inflation. 

While a rise in interest rates can reduce inflation by discouraging consumers from taking on new debt, it will also increase the debt service payments of Americans who are already struggling to keep up with the rising cost of living, which includes food, clothing, and shelter. 

The Federal Reserve has increased interest rates by 0.75 percentage points in its ongoing fight against inflation.

The markets reacted negatively when Fed Chair Jerome Powell indicated a rationale for halting the increases by saying it was "extremely premature" to discuss a pause.

Consumer Price Index numbers show that year-over-year inflation has remained persistently high, falling from a June high of 9.1% to 8.2% as of September. That's far more than the 2% inflation target set by the government.

Important things to remember:

At its December 2022 meeting, the Fed could decide to make lesser interest rate hikes than the quick three-quarter point moves. However, it's likely to increase rates more than expected.

Moreover, Mr. Powell has made it clear that as inflation has proven surprisingly persistent, the route toward an economic soft landing has become narrower.

The market's takeaway from his statement was clear: "I would like folks to realize our commitment to getting this done."

With a 24-hour trading volume of 44 billion, Bitcoin is currently worth $20,391. In the last seven days, Bitcoin has risen