Breaking: Crypto Market Boosts after U.S. Fed Slows down Rate Hike to 25 BPS
The Federal Reserve of the United States recently announced a 25 basis point increase in the interest rates. This follows a series of hikes reported throughout the year, which ranged from 50 to 75 base points. Many are already anticipating a decrease in the interest rate, as Jerome Powell, the Federal Reserve Chair, had previously announced a reduction of rate hikes for January. Major indexes are now trading in green at the time of writing.
Markets go up
The Fed announced that Bitcoin (BTC) climbed to $23,166 from £23,050. Ethereum (ETH), the altcoin supremo, saw its price rise from $1,560, to $1,590.
The prices of flagship cryptocurrencies like XRP, Solana and Dogecoin saw a significant increase in price within minutes of the announcement. The top 100 coins in market capitalization fell by more than 3% in the last hour, with Quant, Terra (LUNA), and Frax Shares (FRX) being the most affected.
Wall Street was already in a bad place. The U.S. indexes plunged before the Federal Reserve’s decision to increase interest rates. S&P500 fell by 0.25%, Nasdaq dropped by 0.15%, and Dow dropped by more than 0.50%. Gold, on the contrary, was 0.5% lower, and is often regarded as a safe-haven.
Read more: Fed Increases Rate by 50 BPS in Market Expectation. Stocks Fall
Rate hikes so far
The Federal Reserve raised interest rates by 0.25 percent in March 2022. This was the first rate increase since 2018. The Federal Reserve raised interest rates by 0.25% in March 2022. This was the first increase in rates since 2018. In May, the Federal Reserve announced the first increase in interest rates of 0.5% in the past 20 years. This was in continuation of its policy of economic tightening. The rate of each subsequent four rate increases, in June, July, September, and September, was 0.75%. The last one, however, was 0.50%.
The Fed was quoted as saying the following:
The Committee believes that it is possible to continue increasing the target range in order to achieve a stance in monetary policy that is sufficiently restrictive in order to return inflation to 2 per cent over time.
Investors are still concerned about the central bank’s strategy to curb price inflation.
At the time of writing, Bitcoin’s price has reached $23,100. According to CoinGape’s crypto market tracker, this represents a 0.6% increase in Bitcoin (BTC) over the past hour, compared to a jump in 1.80% over seven days.
Also read: FBI’s Most Wanted Crypto Scammer, $4 Bn Ponzi Scheme Found in This Country
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