Today is an important and exciting day for anyone interested in Bitcoin and other cryptocurrencies. This is because the US central bank is going to make a decision on interest rates. According to several experts, this could have a big impact on the Bitcoin rate. That the US central bank will make a decision on interest rates today may not sound very exciting, but for investors around the world, this is big news. Why? Because the decision could affect the price of Bitcoin. Several experts expect that the Bitcoin price may fluctuate due to the central bank's decision. What could happen to the price of Bitcoin? Recently, Bitcoin reached a high price of $27,400, but shortly afterwards it dropped towards $26,700. Fortunately, the price then climbed back up and topped $27,000. Currently trading at $27,115, Bitcoin seems to be struggling to rise any further. Investors are currently particularly curious to see what the Federal Open Market Committee (FOMC) will say. If the price of Bitcoin rises above $27,200, it could just be that the price will rise further to $28,000. This is an important level because Bitcoin previously reached this price when Grayscale won a lawsuit in America. Why US interest rates matter for Bitcoin's price Almost all traders (99% to be exact) think that interest rates in America will not change. They expect it to stay between 5.25% and 5.50%, which Jerome Powell will talk more about later today. Many investors expect Powell to explain again that the bank wants to bring inflation down to 2%. It was already well above the desired 2% last year, leading the bank to previously decide to raise interest rates. Should the central bank, despite traders' expectations, still decide to raise interest rates, this could be bad news for Bitcoin. In the past, higher interest rates have been shown to have a negative effect on the Bitcoin price. This is mainly because higher interest rates create more uncertainty about the future. In addition, high interest rates make it less attractive to invest in risky products, such as crypto. Today and the coming weeks remain exciting times for Bitcoin. In addition, the central bank's statement could also affect other cryptocurrencies. It is therefore important to keep a close eye on Powell's statements and adjust your investments accordingly.
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