The crypto currency was recently trading at nearly $28,350, around a percentage point lower over the last 24 hours

The price of bitcoin declined marginally to below $28,500 after the U.S. Federal Reserve did what was broadly anticipated and hiked interest rates by 25bps. The rise sends the federal funds rate to a target range of between 5 per cent and 5.25 per cent.

The biggest crypto currency in terms of market capitalization was recently trading at nearly $28,350, around a percentage point lower over the last 24 hours, as per CoinDesk data.

The Fed’s decision on Wednesday marked the tenth rate raise in 14 months. In its announcement accompanying the rate raise, the Fed’s FOMC stated that stricter credit environment for households and businesses are expected to weigh on economic activity, hiring and inflation, and that it would keep close watch on inflation risks.

In a press conference after the rate announcement, Fed Chair Jerome Powell stated that even though prices had moderated to some extent since the middle of 2022, ​​inflation pressures are higher and that the process of getting inflation back below 2 per cent has a long way to go.

The fed chair also stated a decision on the rate hike halt “was not made today,” although he noted the present statement did not hint at more rate hikes as had earlier statements. The evaluation of the extent to which further policy firming may be proper is going to be a continuing one, meeting by meeting, he stated, noting uncertainties in credit conditions.

It is likely we will have what I expect will be a mild recession, he said.

The CME FedWatch Tool showed that presently more than 93 per cent of traders see the Fed pausing its rate hikes at the policy meeting in June.

Ether, the second-largest crypto currency in terms of market capitalization, recently increased nearly 0.3 per cent to about $1,878.