Federal Rate Hike Causes Soar In Price For BTC, ETH, And Stocks

Bitcoin, Ethereum, and Stocks seem to soar in price after the fourth federal rate hike.

Bitcoin followed the trend of other risk assets today, as is customary for it, as the Federal Reserve continued with its aggressive monetary policy that it has been pursuing. Bitcoin acted as it typically does when it does this.

The Federal Reserve made the announcement today that it will continue with its aggressive monetary policy in order to combat inflation, and so far, both traditional and cryptocurrency markets are reacting favorably to the news. The announcement was made in order to combat inflation, and so the Federal Reserve will continue with its aggressive monetary policy.

At the time that this article was written, the price of Bitcoin was estimated to be $20,650. This figure represents a negligible rise of 1% over the course of the preceding twenty-four hours. When measured in terms of market capitalization, Bitcoin is the most valuable cryptocurrency.

Ethereum, the second largest cryptocurrency by market capitalization, experienced a rise of 1.3% and was trading at approximately $1,600 per coin at the time of the sentence’s writing.

The announcement made by the Fed was followed by continuous gains in the price of stocks. The previous day’s trading on Wall Street was bumpy as a result of a statement made the day before stating that the labor market was robust and that as a result, the Federal Reserve will continue to hike interest rates.

The Federal Reserve increased interest rates today by 75 basis points – the fourth consecutive time this year that they have done so – in an effort to combat inflation that is currently at a level that has not been seen in the United States in the past four decades.

Advertisement

In spite of the fact that the Federal Reserve’s aggressive monetary policy has caused investors to flee to safe havens like the United States dollar — which has seen its value soar — it is anticipated that the central bank may soon slow down the pace at which it is tightening, which is encouraging news that may have prevented a sell-off today. Despite the fact that investors have fled to safe havens like the United States dollar because of the Federal Reserve’s aggressive monetary policy, the value of

According to a statement that was released by the Federal Reserve earlier today, “In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and the developments in economic and financial markets.”

In a research that was published on Wednesday, the Bank of America indicated that it thinks “the Chair will open the door to a slower pace of rises beginning in December.” This prediction was made in reference to the Federal Reserve’s decision to begin a slower pace of rate increases in December.

The recent rise in inflation, Russia’s invasion of Ukraine, and the energy crisis in Europe are just a few of the many reasons why investors worldwide have been selling their shareholdings. Decrypt conducted a survey asking the thoughts of a variety of industry specialists and found that many of them believe that an aggressive policy position taken by the Fed could be harmful to the bitcoin business.

“Digital assets are likely to struggle here if the Fed stays hawkish with fighting inflation,” said Edward Moya, a senior market analyst for OANDA covering the Americas. Moya was referring to the United States.

“The economy is not faltering quickly enough to warrant a downshift with tightening, and that might have an influence on cryptocurrencies,” he added. “The economy is not faltering quickly enough to warrant a downshift with tightening.” “The economy is not slowing down quite fast enough to justify a shift toward tightening monetary policy at this time.” According to Moya, the correlation between Bitcoin and stock prices in the United States has not shifted in recent times and is not likely to do so until there is a significant reduction in the rate of inflation.

Both Bitcoin and Ethereum have continued their upward trend from the previous week, with Bitcoin increasing by 2.1% and Ethereum by 8.4%. And Dogecoin, the first “meme coin,” which was pushed by Elon Musk, is an exception in the digital realm: the coin has climbed by 106% in the past week since the richest man in the world bought Twitter. This makes Dogecoin an outlier in the digital sector.

For More Blockchain News, Click Here.

Advertisement