The price of bitcoin was tested again on Wednesday, with the price of bitcoin falling around $20,000 per coin to nearly $22,000 after the Federal Reserve announced it would continue raising interest rates.
Federal Reserve on Wednesday increased interest rates At 0.75%, it is the largest at once in 28 years. The central bank said it would not stop here – and that there would be more growth later this year.
This caused the price of bitcoin, the largest cryptocurrency by market cap, to drop to $20,392 on Wednesday afternoon Eastern Time. It has since bounced back, and was trading at $21,559.63 at the time of writing, according For CoinMarketCap.
Bitcoin and the broader cryptocurrency market have been bullish over the past several weeks as investors have pulled riskier assets out of their portfolios.
The digital asset space is closely related to equities. Bitcoin today did what it’s been doing for the most part this year — and the stock market followed suit: On the news, the S&P 500 and Dow Jones Industrial Average also fell ahead of the rally.
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