Federal Reserve Most Likely to Raise Interest Rates on July 26
The cryptocurrency market as a whole saw a significant uptick on Wednesday as Bitcoin and Ethereum prices hit their highest point in six weeks. Bitcoin’s price rose by 8% on the previous day to more over $29,000, while Ethereum’s rose by 6% to more than $1800.
Clear Hint of Interest Rate Hike
Meanwhile, US Federal Reserve Chair Jerome Powell stated in testimony before the US House Financial Services Committee that the present pause in interest rate rises is only temporary.
He anticipated further rate hikes since inflation remains over the central bank’s 2% aim. According to the CME FedWatch Tool, there is an 80% chance that the FOMC will raise rates by 25 basis points at their meeting on July 26. Since this was another short squeezing event that sparked a significant market resurgence, traders expected prices to retrace.
Last week, the market started to recover when BlackRock iShares spot Bitcoin ETF applied with the US SEC, leading other financial giants to apply for Bitcoin ETFs. A growing wave of confidence may be attributed to institutional interest in the crypto industry.
Bitcoin has continued its upward pace after regaining its footing above the $24,800 support level. Today, the price of Bitcoin soared beyond $29,000 due to renewed interest from whales and institutional investors.
All eyes are on the upcoming interest rate decision on July 26th. How the market and traders react to the high probability interest rate hike is a million-dollar question.
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