Bitcoin costs continued to revel in their same volatility as ever today, falling after the Federal Open Market Committee (FOMC) issued its latest report stating that it would leave benchmark rates unchanged.
The world’s highest-value virtual currency by overall market cap fell to $67,443. 55 around four p. m. EST, CoinMarketCap figures show.
In its latest announcement, the FOMC revealed that it is maintaining the target range for the benchmark federal budget rate, which has a broader impact on borrowing costs, between 525 and 550 basis points.
The commission states that the economy shows encouraging signs and notes that “job creation has remained strong and the unemployment rate remains low. “
However, policymakers say that while the committee has made “modest” progress in controlling price pressures, inflation “remains elevated. “
Looking ahead, the FOMC stated that “the economic outlook is uncertain,” although it will closely monitor “inflationary risks. “
FOMC members revised their forecasts, in which they estimate that the federal budget rate will end this year at 5. 1%, which would constitute a 25 basis point cut in the rate. That’s down from its March forecast of 4. 6%.
The cryptocurrency suffered the aforementioned price drop to approximately $70,000 today, reaching $69,977. 89 at around 10:30 a. m. EST, reveals more information from CoinMarketCap.
Around 8:30 a. m. EST, the virtual currency began to rise, surpassing more than 2% in less than 20 minutes.
The aforementioned rally came just as the Bureau of Labor Returns released the latest inflation report, which indicated that the Consumer Price Index for all urban consumers (CPI-U) did not do so in May, after rising 0. 3% in April.
This result is higher than the 0. 1% increase expected by analysts in a Wall Street Journal survey.
Bitcoin responded definitively to this result, posting a quick but rather modest gain by rising around $1,500 in less than 20 minutes.
The CPI rose 3. 3% in the 12 months through May, although it was down from 3. 4% last month.
Inflationary pressures, as well as their effect on the federal budget exchange rate, have been the focus of attention for many crypto market participants.
Rising yields can potentially undermine demand for those virtual assets, which in many cases do provide their investors with normal interest payments.
Disclosure: I Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS, and SOL.
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