Bitcoin rises above $21,000 on expectation Fed won’t raise rates by 1%

The bitcoin price rose above $21,000 this morning. This was driven by forecasts that the US Federal Reserve (Fed) will not raise interest rates by 1% at its meeting this month, following the release of information indicating that consumers have lowered their inflation expectations.

Bitcoin price increased by $368 or +1.76% to $21,553.

The CME Group’s FedWatch tool shows that investors are only 30% expecting a 1.00% rate hike from the Fed at its July 26-27 meeting and 70% expecting a 0.75% rate hike.

According to a University of Michigan survey, consumers expect U.S. inflation to reach 5.2% next year, down from 5.3% last month and the lowest level since February.

The consumer sentiment index rose to 51.1 in July, exceeding analysts’ expectations of 50.0.

Bitcoin prices had previously been pressured by concerns that the Fed’s accelerated rate hike could plunge the economy into recession. This would put pressure on the price of risky assets, including cryptocurrencies.

The Spot Market is Open

Monday, July 18, 2022

Crypto
Updated at
USD
Price

Change

%Change
15.40 BTC22,209.83+1,016.51+4.80
15.40 ETH1,467.41+106.22+7.80
15.40 LTC57,41+1.61+2.89
15.40 BNB259.63+8.05+3.20
15.40 XRP0.36+0.01+3.16
15.40 ADA0.47+0.02+4.38
15.40 DOT7.50+0.45+6.32
15.40 DOGE0.07+0.00+2.42
15.40 UNI7.24+0.18+2.49
15.40 LINK6.80+0.32+4.99

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