Bitcoin (BitfinexUSD) price in the early morning of January 6 fell to a 1-month low when the minutes of the Fed's interest rate hike meeting were released.
According to CNN Business, the US Federal Reserve (Fed) early this morning announced the minutes of the meeting of the Open Market Committee (FOMC) on the schedule of interest rate hikes taking place on December 16 (Vietnam time). ).
At that time, Fed officials confirmed that they would begin the process of raising interest rates in 2022 with three increases, followed by four more increases in the period 2023-2024. These are the response measures taken by the US central bank in the context of inflation in this country reaching the peak of many decades after a long time the Fed "pumped money" into the market to help the US overcome the economic crisis. economic hardship caused by the COVID-19 pandemic.
According to the newly released FOMC meeting minutes, the process of raising interest rates may start earlier than expected. The minutes of the meeting read:
“Members of the committee agreed that given the current outlook for the economy, employment market and inflation, the committee may be forced to proceed with an earlier rate hike than previously anticipated. Some members even suggested that the Federal Reserve begin reducing the money supply as soon as the process of raising interest rates is in place.
Immediately after the above information was spread, the price of Bitcoin immediately started, falling more than 6.7% from $ 45,600 to $ 42,500 – the lowest price in a month since the world's No. 1 cryptocurrency. The market bottomed at $42,000 during the December 4 sell-off. At the time of writing, the Bitcoin price has temporarily stabilized above $43,000.
Many other large-cap cryptocurrencies such as ETH, SOL, DOT, and BNB are also decreasing by 5-10% at the moment according to the market correction.
In the last 4 hours, more than 300 million USD of derivative orders on the cryptocurrency market were liquidated, with 89.6% of them being long orders. Bitcoin was the most liquidated coin with $116 million, a third of the total liquidation value.
Not only the cryptocurrency industry, the US stock market is also on fire because of the news that the Fed is speeding up the time to raise interest rates.
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