US Interest Rate Rises to 3.75 to 4 Percent

The US central bank has raised interest rates by 0.25 percentage points to 3.75 to 4 percent, marking the first increase since July 2023. This could dampen demand for bitcoin and other cryptocurrencies as safer investments become more attractive. Investors may take less risk for a return on their money. The market had already anticipated this increase, which may limit the impact on the bitcoin price. However, several scenarios are possible: if interest rates rise further, competition for bitcoin may increase, leading to selling pressure. A negative scenario arises if this increase is the beginning of a series of hikes, which could reduce demand for bitcoin. On the other hand, if inflation decreases and interest rates stabilize, more money could flow back into bitcoin. The focus is now on expectations for future interest rate hikes.

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