Fed Hike: How Will It Affect Bitcoin Price?
• The US Federal Reserve is expected to raise interest rates by 0.25 or 0.50 percent at its next meeting on May 2-3.
• Analysts are citing a strong job market as the reason for the potential rate hike, with unemployment at 3.5% and 236,000 jobs added in April 2021.
• A higher Fed Funds rate could impact the Bitcoin price and other crypto exchange markets in the month leading up to the decision.
Fed Expected to Raise Rates
Analysts are now more certain than ever of a new interest rate hike by the U.S. Federal Reserve. Fed watchers expect the American central bank to raise the federal funds rate by 0.25 or 0.50 percent, according to CME’s Fed Watch tool which has a 72% probability of at least a 0.25 hike at its next meeting on May 2 – 3.
Job Market Showing Strength
The Fed is likely to raise rates due to a sustained show of strength in U