Fed Hikes Rates Again: What Will Happen to Bitcoin?

• The Federal Reserve hiked interest rates by 0.25 basis points in March.
• The Fed stated that inflation remains a dangerous adversary and that further rate hikes may be necessary to return it to two percent.
• Bitcoin’s performance has been unaffected despite the rise of interest rates.

Federal Reserve Hikes Rates Again

In late March, the Federal Reserve hiked rates another 0.25 basis points, citing inflation as a dangerous adversary and suggesting that additional policy firming may be necessary to bring it back down to two percent over time. This was the highest peak since 2007, bringing the average interest rate on home or auto loans beyond five percent, creating difficulties for many citizens who are now not able to fulfill their dreams due to this tight credit condition.

Statement from the Federal Reserve

The Federal Reserve issued a statement in which they claimed that America’s banking system is sound and resilient, but admitted that recent developments would lead to tighter credit conditions for households and businesses as well as weighing on economic activity and hiring. They also stated that if data indicates faster tightening is warranted, they would increase the pace of rate hikes accordingly.

Jerome Powell’s Comments

Jerome Powell, who heads the Federal Reserve, mentioned: “If the totality of data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.“ This suggests that even more increases in interest rates could still happen despite this recent hike.

Bitcoin Performance Unaffected

Despite all of these changes in monetary policy from the Fed, Bitcoin’s performance has remained largely unaffected so far. Analysts were worried about how Bitcoin would respond when faced with such high levels of interest rates but so far there have been no major changes in its value or usage over this period of increased rates from the Fed.


The Federal Reserve continues its fight against inflation with an aggressive stance on raising interest rates which has led some people being unable to achieve their goals due to tight credit conditions created by such policies. However, so far Bitcoin appears unaffected by these attempts at controlling inflation through monetary policy adjustments made by the Fed