The Fed made the expected 25bps hike, both gold and Bitcoin surged on the news – highest correlation in 6 months Quick Take
- On Feb. 1, the Fed hiked an expected 25bps — taking the fed funds target to a range of 4.5% to 4.75%.
- Chair Powell acknowledged that inflation had “eased somewhat.” However, it remains “elevated,” and “the committee anticipates that ongoing increases in the target range will be appropriate.”
- Bitcoin and Gold surged on the news — Bitcoin broke $24,000 while Gold sits above $1,950.
- Bitcoin and Gold have a 97% correlation with one another — the highest in 6 months.
Analyst 
James Van Straten
James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Jerome Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term.