- The Federal Reserve raised interest rates in the U.S. again during the last FOMC meeting.
- The banking regulator increased interest rates by another 25%, the highest level since 2001.
- Social engagement among Bitcoiners grew following the interest rate hike announcement.
The Federal Reserve raised interest rates in the U.S. again during the last Federal Open Market Committee (FOMC) meeting. According to reports, the banking regulator increased interest rates by another 25%, hiking it to the highest level since 2001. This action generated social reactions that Santiment, the market intelligence platform with social metrics, believes could significantly impact the market.
According to Santiment, early indications suggest the outcome of the latest FOMC interest rates figures may be a “sell the rumor, buy the news”, based on positive prices. Santiment shared a screenshot showing an increase in discussions about the 25% interest rate hikes before the announcement. It also showed that engagement about the FOMC making the rates official started to grow after the Fed made the announcement.
Santiment also revealed a surge in discussions related to Bitcoin compared with other cryptocurrencies. The surge followed the FOMC’s announcement of the interest rate hike. At the same time, Bitcoin price embarked on an upward movement, attempting to retest the $30,000 level. Santiment noted that the heightened social dominance is a sign of fear among Bitcoin’s community members and increases the likelihood that the price would climb higher.
Minutes of the latest FOMC revealed that the Fed raised interest rates by 25 basis points (bps) to 5.50%. The report noted there’s a long way before achieving 2% inflation. However, the monetary policy regulator stated it would take a data-dependent approach to future interest rate hikes.
Bitcoin price spiked to $29,678 shortly after the FOMC minutes were released. The spike suggested a trend reversal after the price dropped below $29,000 for the first time in the past month.
Santiment’s data reveals increased social activity among Bitcoin’s community members, suggesting ongoing discussions and considerations. That may imply that the full impact of the FOMC minutes is yet to be felt by the market.
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