On March 23, 2023, the U.S. Federal Open Market Committee (FOMC) announced its widely expected decision to raise the interest rate by 25 basis points. As a result, Bitcoin (BTC) fell below $27,000, down 4.1% over the past 24 hours.
The FOMC’s decision reinforces the Federal Reserve’s concerns that inflation remains problematic. However, the committee also acknowledged that the recent banking crisis could result in tighter credit conditions for households and businesses, weighing on economic activity, hiring, and inflation. Among other major digital currencies, Ether (ETH) fell 3.1% from Tuesday’s same time price to hover around $1,740. The declining consumer price index (CPI) suggested that the Fed measures were slowly taming inflation, offering support for monetary policy observers who have insisted in recent months that the Fed had overstepped.
Recently, the CoinDesk Market Index, which serves as an indicator of the general performance of the cryptocurrency market, showed an increase of 4%