The rate of Btc against the euro falls due to the increase in rates of the US central bank.
The Central Bank of the United States of America raised its base interest rate to 4.5% on Wednesday, now it is expected that the rate increase will peak next year, above 5%.
The US Federal Reserve raised interest rates by 0.5% on Wednesday.
The decision brings the federal funds target range to 4.25% to 4.5%, the highest level in 15 years.
Federal Reserve Chairman Jerome Powell said the rate is the highest for the current market but is expected to rise to 5% next year.
“50 basis points is still a historically large increase and we still have a lot of room to go,” Powell said at a press conference following the FOMC announcement.
“The most important decision is no longer speed,” Powell said, but rather how long the Fed should remain restrictive until inflation drops significantly, which he says “will take some time.”
Since the decision, Bitcoin ( BTC ) has fallen by 2.5% to around 16,500 euros.