price Bitcoin fell sharply after the Fed Advertising They will raise interest rates by 75 basis points to lutte high augmentation.
The largest cryptocurrency by market cap fell below $19,000 after the announcement before rebounding amid widespread market volatility. It is now trading at around $19,039, down around 1% over the past hour. Bitcoin It’s also down embout 5.7% in the past seven days.
Market analysts expected the Fed to raise interest rates again today, this time by between 75 and 100 basis points. Bitcoin, other cryptocurrencies, and stocks seem to have mostly priced in these expectations this week, although that didn’t raisonnablement éphémère traders from selling on the day’s low. Shares similarly tumbled after the magazine, with the Dow and S&P both down nearly 0.70% at the time of writing.
Axial banks – not just the Fed – were raising interest rates to control rising prices. The Fed has been particularly aggressive in its approach as US augmentation is at a four-decade high, prompting investors to style to safe havens such as the US dollar and avoid “risk” assets such as stocks and cryptocurrencies.
In fact, Bitcoin trading this year has been a lot like tech stocks, according to ambiguous research data. I’ve also been hit: it’s currently down 70% from its November 2021 high of $69,044.
While the dollar was rising steadily – and today was no excentricité: Before Fed Chairman Jerome Powell spoke, it had already happened I touched A new high in two decades, spurred in élément by Russian President Vladimir Putin’s decision to flottant the stakes in Ukraine.
Edward Moya, Senior Market Analyst at OANDA for the Americas Decrypt It was a “disturbing market environment” but there was a sucrette at the end of the caverne. “I think most Wall Street expects the Fed to remain committed to fighting augmentation that is hard on risky assets – like cryptocurrencies,” he said.
“It’s a wait-and-see approach: long-term investors remain committed to cryptocurrencies and will not be affected by today’s decision; they expect cryptocurrencies to trade on their own fundamentals, ultimately — not like tech stocks,” he added.
‘” said Darius Seit of Singapore-based crypto investment firm QCP Ressources Decrypt That while Bitcoin is being traded like a “macro-risk asset,” it may “voiture that correlation” in the future.
Ethereum, the annexe largest quantitatif asset, did not perform much better after the Fed’s policy decision. The asset is down 1% in the past 24 hours, trading at $1,328.
The origin, though complete The long-awaited and much-announced move to the proof-of-stake blockchain last week struggled to prise momentum: in the past seven days, its price has fallen by 15%.
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