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.

Bitcoin Hits Highest Levels Since Late 2014 | TechCrunch

After a rough 20 months in Bitcoin starting with the collapse of Mt.Gox in Feb of 2014, the Bitcoin price has been coming back to life.  Well above its 2015 low of $167.00.  What’s driving Bitcoin higher?  Is it Chinese investors seeking safety, increasing user base, expanding use cases, the reality is all of the above.

After a mostly boring 2015, bitcoin is making waves as the year ends by reaching new price heights. Bitcoin is north of the $400 mark, once again, for the second time since 2014. This time, it has…

Source: Bitcoin Hits Highest Levels Since Late 2014 | TechCrunch