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BTC/USD Remains Muted On Fed’s Rate Hike Decision
The U.S. Federal Reserve finally raised its interest rates on Wednesday by 25 basis points to 0.25%- 0.50%, putting an end to its long-running near-zero short-term interest rates.
“The Fed’s decision today reflects our confidence in the U.S. economy,” Fed Chairwoman Janet Yellen said Wednesday in a press conference after a two-day policy meeting. “We believe we have seen substantial improvement in labor market conditions and while things may be uneven across regions of the country, and different industrial sectors, we see an economy that is on a path of sustainable improvement.”
The Wall Street Journal reported an upbeat market reaction with the Dow Jones Industrial Average rising 224.18 points, or 1.28%, to 17749.09. The trend continued in Asia early Thursday, with stock markets in Japan, Hong Kong, Australia and South Korea moving upwards.
In the currency markets, the US dollar index strengthened considerably following the decision. DXY rose from 97.243 levels to 98.955 levels. It currently trades at 98.643 levels.
Coming to Bitcoin price, it would not be wrong to say that it remained largely unaffected by the rate hike. BTC/USD rose from 452.82 levels to 458.30 levels. It fell to 448.75 levels before recovering to 457.21 levels where it currently trades.
On the upside, it faces minor resistance at 465 levels. Further resistance is seen at 480 levels and a break above could see the pair testing 505 levels.
On the flipside, minor support is seen at 425 levels. A consistent break below could drag the pair to 400 levels and then to 370 levels.