Crypto markets will not be commonplace after the Fed talks of the biggest rate hike since 1994: The Defiant
Crypto markets rallied on Wednesday after the largest rate hike in nearly three decades, signaling policymakers’ determination to control US inflation while proposing a rate hike would not be common.
Cryptocurrencies have kept pace with the stock, which jumped after the US Federal Reserve raised interest rates by 75 basis points, its biggest increase since 1994. Fed Chairman Jerome Powell said there was no prospect of a further increase at this level at the next Fed meeting.
Bitcoin and Ether gained more than 2%, with BTC posting its first 24-hour gain in a week. The S&P 500 rose 1.46% and the Dow Jones Industrial Average rose 1%.
“Today’s 75 basis-point increase is an unusually large one and I don’t expect a move of this size to be normal,” Jerome Powell, Fed chairman, told a news conference after the meeting, according to Bloomberg News.
According to data released last week, this was the Fed’s latest bid for Nikap inflation, which reached a 41-year high in May. That data set cryptocurrency prices in a freefall that ended with Wednesday’s Fed meeting.
Bitcoin fell to 20 20,196 early Wednesday, the lowest since December 2020, according to CoinGecko. Although it rose a few hours later and traded just above $ 22,600 on Wednesday evening.
Ether also fired after 2 pm Eastern, rising from a low of $ 1,060 to a low of $ 1,200 a few hours later.
Almost every cryptocurrency saw gains on Wednesday. Cardano, Algorand, Solana, Polkadot and Uniswap all rose more than 10% on Wednesday evening.
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