At the most recent Federal Open Market Committee (FOMC) meeting, the Federal Reserve increased interest rates in the United States once more. Observations led the banks regulator to increase interest rates by another 25%, bringing them to their highest level since 2001. Santiment, a market intelligence platform with social analytics, believes that the social reactions to this action may have a significant impact on the market.
Early signs suggest that the latest FOMC interest rate estimates may have been a case of “promote the rumour, buy the information,” based on high prices, according to Santiment. Santiment published a screenshot showing an increase in conversations leading up to the announcement of interest rate increases of 25%. Additionally, research demonstrated that after the Fed made its announcement, interest in the FOMC making the charges official started to grow.
Santiment also identified a rise in Bitcoin-related comments relative to other cryptocurrencies. The increase followed the FOMC’s announcement of an interest rate increase. At the same time, the price of Bitcoin began to rise as it attempted to retest the $30,000 mark. According to Santiment, the increased social dominance is a sign of anxiety among Bitcoin’s neighborhood residents and will enhance the likelihood that the value will rise even higher.
According to the most recent FOMC minutes, the Fed increased interest rates by 25 basis points (bps), bringing them to 5.50%. The research noted that there is still some time until inflation reaches 2%. However, the financial coverage regulator stated that it will approach future rate hikes according on evidence.
Immediately following the release of the FOMC minutes, the price of bitcoin increased to $29,678. After the price for the first time ever went below $29,000 last month, the rise signaled a pattern reversal.
According to Santiment’s data, residents of the Bitcoin neighborhood engage in more social activity than usual, which may indicate continuing conversations and problems. That will show that the market has yet to receive the full impact of the FOMC minutes.
