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Bitcoin spikes above $22.2K as Fed votes for 75-basis-point rate hike

Bitcoin (BTC) charged above $22,000 on July 27 after the United States Federal Reserve enacted another major interest rate hike.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Fed: “Appropriate” to keep hiking after July

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reacting positively to confirmation that the Federal Open Markets Committee (FOMC) had unanimously voted to hike the Fed funds rate by 75 basis points.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run,” a press release stated.

“In support of these goals, the Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate.”

Markets had already expected that 75 basis points would be the Fed’s next move. Commentators, however, increasingly considered the implications of the central bank’s balancing act between taming inflation and avoiding recession going forward.

“Watch the Fed abandon forward guidance and rate commitments and embrace data-dependency. This cycle of hikes ends at 2 pm tomorrow. Buy bonds,” David Rosenberg, founder and president of Rosenberg Research & Associates, stated the day prior.

Looking farther out, meanwhile, Wall Street macro strategist David Hunter forecast continued relief for risk assets. More pertinent was a bet that recent lows would not repeat, a potential boon for Bitcoin bulls given the cryptocurrency’s ongoing correlation to equities markets.

“No matter what the Fed decides today (75 or 100bps), the market is poised for a move higher to S&P 4150–4200 & then maybe a sharp, short pullback to 3800 before a much bigger, more sustainable rally to 6000 gets underway,” he told Twitter followers.

“The lows are in.The market not likely to undercut the June lows.”

At the time of writing, volatility characterized spot markets as BTC/USD flitted around $22,000. Fed chair Jerome Powell was due to begin a press conference at the time of writing, his language apt to add further head or…

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