Summary of Article
- The Federal Reserve has hiked rates for the 16th time in March, citing inflation as an adversary.
- Jerome Powell, head of the Federal Reserve, mentioned that more rate hikes may be necessary if inflation does not fall.
- Despite all this, Bitcoin remains unaffected and is still experiencing a meteoric rise.
Federal Reserve Hikes Rates Again
In late March, the Federal Reserve hiked rates 0.25 basis points in response to the banking failure occurring within America’s borders. Many analysts wondered if bitcoin’s meteoric run would somehow be affected by this decision. This rate hike brings interest to its tallest peak since 2007—a whopping 16 years! In a statement, the Fed mentioned that inflation in the country remains a dangerous adversary and it appears they are prepared to take whatever action necessary to combat it. Jerome Powell also noted that if data indicates faster tightening is warranted, they would increase the pace of rate hikes.
Impact on American Citizens
The average interest rate one can expect to pay on a home or auto loan is beyond five percent at this stage—which is causing many citizens and residents of America to be cut off from the American dream. The Fed’s statement indicated that tighter credit conditions, economic activity decline and hiring/inflation issues will all arise due to these recent developments.
Despite all this turbulence in America’s banking system, Bitcoin seems to be unaffected and continues its meteoric rise without any issues or problems. There have been no reports so far indicating any sort of negative impact on BTC due to these rate hikes.
It appears that despite all these rate hikes from the Federal Reserve and potential further hikes throughout the year, Bitcoin will remain unscathed from any potential damage or harm caused by them. It looks like BTC just keeps getting stronger as time passes—and there’s nothing anyone can do about it!