Bitcoin Price Hikes As Much As 5.9%

Almost two months after the Federal Reserve quashed suspects that it will produce jumbo-sized moves on the interest-rate policy, the Bitcoin price hiked at its biggest rally.

Bitcoin, the world’s largest cryptocurrency increased by around 5.9% to $40,000 with other digital currencies including Litecoin and Ethereum. this movement follows the comment from Fed Chair Jerome Powell that the central bank was not up to raising rates by 75 basis points at its upcoming meetings with the fear that it will tamp down the inflation.

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The Policymaking Federal Open Market Committee of the U.S central bank unanimously supported the rise of the benchmark rate by half a percentage point. The committee also said that it will allow its treasuries holdings and mortgage-backed securities to roll off in June.

But in this higher-rate situation, Bitcoin has not crossed the highs it was at the start of the year yet. Over the past few months, it has been broadly exchanged within a close-knit range.

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Last week, Bitcoin was the reason for the bulk of the flows in what was its largest single week of outflows since June last year. The bad thing about the situation is the outflows of the money from the sector. Investors pulled around $118 million from crypto products last week.

Anupama Das

An active reader and follower of news. A budding journalist tries to spread authentic news to people.

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