Bitcoin Market Sells Off Briefly in Response to Fed Interest Rate Hike

For the first time in almost a decade the Federal Reserved has raised interest rates a .25 percent and set the new rate target to between .25 percent and .5 percent.   The expectation in the markets is the Fundamental shift by the Fed has set in motion a plan to incrementally raise rates through 2016.

 

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The response in the Bitcoin market was a brief sell off which saw the intraday price of Bitcoin on the Bitfinex exchange trade from $454.00 down to $446.50. Bitcoin quickly recovered and is now trading again at $454 as off 2.37 PM Eastern time.

Interest rate increases have traditionally meant a stronger dollar.  Continued appreciation by Bitcoin in the face of U.S. rate hikes would be extremely bullish.