(PresidentialHill.com)- This week, the price of Bitcoin started to rise once again, reaching $40,000 per coin ahead of the fed’s monetary policy meeting that took place on Wednesday. During the meeting, it was decided that interest rates would be raised by 25 basis points in an effort to combat rising inflation.
The United States Federal Reserve announced that it would increase the current rate of almost zero to 0.25-0.5%. It’s the first time since 2018 that the Fed has raised interest rates.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices and broader price pressures,” the Federal Reserve announced in a statement.
“The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity.”
Bitcoin holders and other cryptocurrency enthusiasts took interest in the decision.
Bob Iaccino, a strategist at Path Trading Partners, explained that the reason why crypto investors care about the investment is that there has been a close correlation between Bitcoin value and the Nasdaq index – and that the correlation is still holding very strong.
After Bitcoin shot up to $40,000, it has remained over that mark since. As of March 18, Bitcoin’s value reached almost $42,000 – indicating that it could be back on an upward path. That’s good news for investors who are feeling the hit of inflation.