Bitcoin slips as traders digest Fed's 10th rate hike, Powell's remarks

Bitcoin ( BTC-USD ) edged down in Tuesday mid-afternoon trading after the Federal Reserve hiked rates by the expected 25-basis-point increment, but signaled a pause in its fastest tightening campaign since the 1980s. Just moments before the monetary-policy decision, bitcoin ( BTC-USD ) changed hands modestly lower at $28.58K, losing steam from the rally in the previous session. The coin then slightly extended its downward spiral to $28.39K, down 1.1% , as of 3:25 p.m. ET. The broader stock market, meantime, swung between gains and losses as the U.S. central bank softened its forward guidance , signaling a possible pause in its rate increases after ratcheting up rates by 500 basis points in 15 months. Even so, persistently high core inflation and a still-tight labor market (demand exceeding supply) could mean further hikes are on the horizon, as the Fed seeks to lower inflation to its 2% target. A minority share of traders expected the Fed to pause rates in May given the recent stresses in the banking system, but Fed Chair Jerome Powell emphasized in his post-monetary decision presser that "conditions have broadly improved" in the banking sector since the turmoil emerged in March. He also said the Fed won't have to raise rates as high as it might have without the increased credit tightening from the banking stresses. "We on the committee have a view that inflation is going to come down not so quickly... If that's right, it's not appropriate to cut rates," Powell noted. More on crypto Bitcoin gains as traditional banking jitters buoy crypto prices Sell Bitcoin In May And Go Away (Until It Cross This Moving Average)