Bitcoin jumps to $40,000 after Fed chair Powell rules out bigger rate hikes

Bitcoin jumps to $40,000 after Fed chair Powell rules out bigger rate hikes

The price of bitcoin climbed about 6% Wednesday after the Federal Reserve raised rates by half a point —the biggest hike in about 20 years — as expected. began climbing ahead of the end of the Federal Open Market Committee's meeting. The half-point hike was widely expected by many. Its surge accelerated after Fed Chair Jerome Powell ruled out the possibility of a 75-basis-point increase. "A 75-basis-point increase is not something that the committee is actively considering," Powell said. "I think expectations are that we'll start to see inflation, you know, flattening out." At one point amid Powell's afternoon remarks, bitcoin climbed as high as $40,002.75. Crypto assets across the market rose with it. "Any FOMC guidance that does not include a 0.75 percent interest rate increase would be bullish for both crypto and equities," said Nick Mancini, director of research at crypto sentiment analytics platform Trade The Chain. "We believe that the market has priced in continued hikes of 0.25% to 0.50% moving forward for 2022. This gives the market certainty, which, in turn, breeds bullish price action." Joe Orsini, director of research at Eaglebrook Advisors, noted that with inflation at 40-year highs, the market expected the most aggressive