Bitcoin holds above the psychologically-important $20,000 level

The Bitcoin price increased because of the announcement delivered by the Fed which stated that the interest rate is going to be raised by 0.75%. At the moment Bitcoin's price fluctuates, but in general it stays above the psychologically-important level of $20,000.

It is worth noting that investors expected such a rate hike. Jerome Powell hinted at holding rates and mentioned a decrease in the likelihood of a pivot at the next meeting.

According to Cointelegraph, Bitcoin and other cryptocurrencies such as Ethereum are likely to remain closely linked to U.S. equities. According to the source, cryptocurrencies will show the same price performance both before and after previous rate hike cycles. The Bitcoin bulls are already gearing up for a win after the FOMC meeting, as well as a $640 million BTC options price jump. It is worth reminding that the options expire on November 4th.

Many traders believe that the price of BTC could rise sharply and liquidate a significant portion of short positions in futures contracts if the Fed turns to its current policy of quantitative tightening and interest rate hikes.