Bitcoin bounces up from $20,000 after the Federal Reserve makes biggest rate hike since 1994

• The Federal Reserve announced a 75-basis-point hike Wednesday, and bitcoin initially slipped on the news.
• But bitcoin climbed back above $21,000 following the Fed hike, though early Wednesday it hit $20,133.

Bitcoin rebounded after slipping closer to $20,000 Wednesday afternoon, when the Federal Reserve announced a 75-basis-point interest rate hike — the central bank's biggest increase since 1994.

At one point immediately after the Fed's announcement, bitcoin hit $20,378, then pared losses. But earlier Wednesday, bitcoin slid to $20,133.

At 2:15 p.m. ET, bitcoin traded at $20,591, down 6.91% for the day. Then Fed Chair Jerome Powell said at his press conference that he does not to expect 75-basis-point hikes to be common, adding that the next increase in July could be 50 or 75 basis points. Bitcoin recovered more losses and traded at $21,848 by 3:30 p.m. ET.

The world's largest cryptocurrency by market cap has fallen roughly 29% over the last five days, and 56% year to date.

As it extends its months-long slide, the digital asset is falling toward a price not seen since 2020, reflecting an overall sell-off in the crypto market.

Earlier this week, crypto lender Celsius halted withdrawals, citing "extreme market conditions," and now the firm has hired lawyers to help it restructure its finances, the Wall Street Journal reported Wednesday.

Celsius's customers have pulled more than $2.5 billion in assets this year amid the crypto bear market, according to the Financial Times.

Meanwhile, "Shark Tank" investor Kevin O'Leary said the crypto market won't hit bottom until there's a panic. "In the crypto world, we need someone to go to zero," O'Leary told CoinDesk.