Crypto Market Pumps After US Fed Slows Down Rate Hike To 25 BPS – Crypto News – Crypto News
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Crypto Market Pumps After US Fed Slows Down Rate Hike To 25 BPS Crypto Market Pumps After US Fed Slows Down Rate Hike To 25 BPS

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Crypto Market Pumps After US Fed Slows Down Rate Hike To 25 BPS – Crypto News

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The Federal Reserve of the United States just recently announced an increase in the interest rate of 25 basis points, This comes after a series of hikes that were formally reported throughout the year and ranged from 50 to 75 basis points. However, many have already braced for a reduction in the interest rate because Jerome Powell, the Chair of the Federal Reserve, had previously announced a reduction in rate hikes for January of this year. At the time of writing, the announcement has been met with much approval by the cryptocurrency marketwith major indexes now trading in the green.

Markets Go Up

As a result of the announcement made by the Fed, the cryptocurrency with the largest market capitalizationBitcoin (BTC), climbed to $23,166 from $23,050, while the altcoin supremo — Ethereum’s (ETH) price went from $1,560 to hit $1,590.

Within minutes after the announcement, the prices of flagship cryptocurrencies such as XRP, Solana, Dogecoin and chain link experienced a significant uptick in price. However, out of the top 100 coins by market capitalization — Frax Shares (FRX), Terra (LUNA) and Quantity were the most hit, falling by over 3% in the past hour.

Wall Street was already off to a shaky start. The US indexes fell ahead of the Federal Reserve’s decision on interest rate hikes, with S&P 500 dipping by 0.25%, Nasdaq by 0.15% and Dow by over 0.50%. Goldenon the other hand, which is more often than not regarded as a safe haven, sank by 0.5%.

Read More: US Fed Hikes Interest Rate By 25 bps, Says Hike Appropriate

Rate hikes thus far

In March 2022, the Federal Open Market Committee (FOMC) hiked interest rates by 0.25%, marking the first increase in rates since 2018. In its March policy meeting, it forecasted six additional hikes, all of which have since been implemented. The Federal Reserve continued its policy of economic tightening in May when it announced the first hike in interest rates of 0.5% since the year 2000. Before today’s reduction of 0.25%, each of the subsequent four rate increases—in June, July, and September —was set at 0.75%, whereas the last one was recorded at 0.50%.

While speaking on the recent rate hike, the Fed was quoted as saying:

The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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