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The Federal Reserve hiked rates another 0.25 basis points in late March. The decision came in light of the banking failure occurring within America’s borders, and many analysts found themselves wondering if bitcoin’s meteoric run would somehow be affected.
The Federal Reserve Again Hikes Interest Rates
This new rate hike brought interest to its tallest peak since 2007. That’s a whopping 16 years! In a statement, the Federal Reserve mentioned that inflation in the country remains a dangerous adversary, and it clearly doesn’t care about the many external elements that appear to be affecting the nation’s economy at the time of writing. The Fed, in many ways, is running on a one-track mind, and this is all it can think to do when fighting an enemy such as inflation.
Federal Reserve officials issued the following statement after the rate hike:
The U.S. banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain.
The Fed says America’s banking system is safe and sound, but is that really the truth? At this stage, many residents and citizens of America are aware that federal officials have practically turned lying and bending the truth into a career, and at this point, it almost feels as if those in charge are looking to bankrupt the very nation they were hired (or elected) to serve. How can this be?
The Fed continued its comments with:
The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to two percent over time.
They further stated that they are anticipating further rate hikes throughout the year should inflation be unwilling to fall back. At the time of writing, the average interest rate one can expect to pay on a home or auto loan is beyond five percent. Many residents have been cut off from the American dream; there’s no beating around the bush on this.
Jerome Powell, who heads the Federal Reserve, mentioned:
If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.
BTC Isn’t Doing too Badly
This has been an ongoing problem for well over a year, but the good news is that bitcoin is showing resilience during this situation. Back in 2022, the world’s number one digital currency by market cap showed extreme vulnerability to interest rate hikes and related measures.
Now, however, the currency has a banking crisis to “lean back on,” meaning that while one end of the spectrum is fighting it, there is another that’s providing the support it needs to continue spiking.