The price of Bitcoin (BTC) climbed 6% overnight to move back above $40,000 U.S. after the Federal Reserve (Fed) raised interest rates by half a percentage point.
Bitcoin began climbing ahead of the end of the Federal Open Market Committee’s (FOMC) meeting. The half-point rate hike was widely expected and was the biggest increase by the U.S. central bank in two decades.
Bitcoin’s price increase accelerated along with stocks after Fed Chairman Jerome Powell ruled out the possibility of a 75-basis-point increase in coming months.
However, despite the rise, Bitcoin’s price was pulling back in early morning trading, falling to $39,500 U.S. as stocks slumped following a big rally immediately after the latest Fed decision was announced.
Year to date, the price of Bitcoin is down 17% and has fallen 35% over the past six months.
