Bitcoin Falls Below $18k After Federal Reserves Announces 50bps Rate Hike

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Bitcoin Falls Below $18k After Federal Reserves Announces 50bps Rate Hike
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The Fed's latest rate hike takes the central bank’s target interest rate above 4%.

, the crypto market move has contributed to $44 million in liquidations within the past 24 hours, most of which came from Bitcoin trades.Going into the meeting, the market priced in a roughly 80% chance of a 50 basis point rise, with a 20% likelihood of a fifth 75-point rise, according to the CME’s. With the prior ringing true, the central bank’s target rate lies between 4.25% and 4.5%.

The Fed has raised rates throughout 2022 in an effort to combat record-high CPI inflation. With November’s inflation numbers showing signs that their efforts are working, market participants expect the hikes to slow heading into 2023.

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