Bitcoin flirts with $40.000 USD as Fed stamps highest rate hike in 22 years
Total cryptocurrency market capitalization rose by 5.4% Wednesday as the U.S. Federal Reserve announced it is raising interest rates by 50 basis points, the sharpest in the last 20 years.
Bitcoin began to rise in value ahead of the conclusion of the Federal Open Market Committee meeting. Many people predicted the half-point increase, and its rise intensified when Fed Chair Jerome Powell ruled out a 75-basis-point raise.
Following a 25 basis point increase in March — the first since December 2018 — the increase established a target range of 0.75 percent to 1 percent. March recorded the fastest rising inflation rate in the U.S. with a CPI of 8.5%. “A 75-basis-point increase is not something that the committee is actively considering,” Powell said. “I think expectations are that we’ll start to see inflation, you know, flattening out.”
In addition, The Dow Jones Industrial Average closed 2.81% higher, the S&P 500 closed up 2.99%, and the Nasdaq Composite by 3.19%. This shows that the US stock market and Bitcoin are still closely related. At one point amid Powell’s afternoon remarks, bitcoin climbed as high as $40,024.75 USD. Crypto assets across the market rose with it. Zilliqa (ZIL) led the sharp rise in the cryptocurrency market with 38.1%, with all top 100 cryptocurrencies by market cap landing in the green.
“Any FOMC guidance that does not include a 0.75 percent interest rate increase would be bullish for both crypto and equities,” said Nick Mancini, research director at crypto sentiment analytics platform Trade The Chain. “We believe that the market has priced in continued hikes of 0.25% to 0.50% moving forward for 2022. This gives the market certainty, which, in turn, breeds bullish price action.”
As a result, hiking interest rates below 75 basis points will have little influence on the stock market and cryptocurrency markets, as this is something that everyone can speculate on as the Fed is on the road to cutting earnings to avoid excessive inflation, buying assets and boost interest rates. With inflation at 40-year highs, the market expected the most aggressive tightening schedule in the same amount of time.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Author
Total cryptocurrency market capitalization rose by 5.4% Wednesday as the U.S. Federal Reserve announced it is raising interest rates by 50 basis points, the sharpest in the last 20 years.
Bitcoin began to rise in value ahead of the conclusion of the Federal Open Market Committee meeting. Many people predicted the half-point increase, and its rise intensified when Fed Chair Jerome Powell ruled out a 75-basis-point raise.
Following a 25 basis point increase in March — the first since December 2018 — the increase established a target range of 0.75 percent to 1 percent. March recorded the fastest rising inflation rate in the U.S. with a CPI of 8.5%. “A 75-basis-point increase is not something that the committee is actively considering,” Powell said. “I think expectations are that we’ll start to see inflation, you know, flattening out.”
In addition, The Dow Jones Industrial Average closed 2.81% higher, the S&P 500 closed up 2.99%, and the Nasdaq Composite by 3.19%. This shows that the US stock market and Bitcoin are still closely related. At one point amid Powell’s afternoon remarks, bitcoin climbed as high as $40,024.75 USD. Crypto assets across the market rose with it. Zilliqa (ZIL) led the sharp rise in the cryptocurrency market with 38.1%, with all top 100 cryptocurrencies by market cap landing in the green.
“Any FOMC guidance that does not include a 0.75 percent interest rate increase would be bullish for both crypto and equities,” said Nick Mancini, research director at crypto sentiment analytics platform Trade The Chain. “We believe that the market has priced in continued hikes of 0.25% to 0.50% moving forward for 2022. This gives the market certainty, which, in turn, breeds bullish price action.”
As a result, hiking interest rates below 75 basis points will have little influence on the stock market and cryptocurrency markets, as this is something that everyone can speculate on as the Fed is on the road to cutting earnings to avoid excessive inflation, buying assets and boost interest rates. With inflation at 40-year highs, the market expected the most aggressive tightening schedule in the same amount of time.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Other Posts
Related Posts
Latest
The Best Cryptos to Buy Under $1: Affordable Coins with Massive Potential in 2024!
NYC Taxi Driver Struck Gold with Ethereum—What’s His Next Target? BlockDAG, the Presale Giant!
Press Release
The Best Cryptos to Buy Under $1: Affordable Coins with Massive Potential in 2024!
NYC Taxi Driver Struck Gold with Ethereum—What’s His Next Target? BlockDAG, the Presale Giant!
