Bitcoin ($BTC) hit a new 2023 high of $35,912 on Wednesday, following the Federal Open Market Committee (FOMC) meeting. The price increase was likely due to a combination of factors, including the decision to pause interest rates and the continued growth of the cryptocurrency market.
With rates on pause, there could be higher asset prices coming. Inflation may also return, and punish anyone holding fiat assets.
Hawkish Pause?
According to the latest updates, the U.S. Federal Reverse (Fed) has paused interest rate hikes, maintaining the rate at 5.25% to 5.50%. The Fed also left the rate unchanged at the September 2023 FOMC meeting.
Jerome Powell, the Fed Chair, emphasized that the agency doesn’t rule out raising interest rates in the coming meetings. He also said that the Fed is committed to its long-term goal of controlling inflation and that it has no current plan to cut rates in the future.
The pause came as…
