The U.S. Federal Reserve announced on Wednesday that it had kept its near-zero interest rates unchanged.
The Fed is also holding steady on its asset purchases of $120 billion per month.
It has sharply raised its inflation estimate for the fourth quarter of 2021 to 3.4 percent, which is a whopping 1 percent spike compared to the previous forecast. Nevertheless, the central bank has reiterated that inflation is transitory.
Seven Fed officials see rates increasing in 2022 (as opposed to four in March). All officials see rates unchanged throughout 2021.
Bitcoin's price action has become topsy-turvy since the Fed decision. The largest cryptocurrency is currently trading at $38,770 on the Bitstamp exchange.
The Dow Jones Industrial Average is also down over 300 points at press time.