Thursday, December 1, 2022
HomeCryptoRecord Fed Rate Hike: What Implications for Bitcoin and Ethereum?

Record Fed Rate Hike: What Implications for Bitcoin and Ethereum?

After the announcement of the US Federal Reserve (Fed)this Wednesday, June 15, 2022, and its rate hike of 75 basis points, bitcoin (BTC) and the broader cryptocurrency market did not rebound, but instead fell.

At 14:48 UTC, bitcoin was valued at $21,000, down about 1% in the previous 24 hours and 31% in the previous seven days. L’Ethereum (ETH) meanwhile, remained nearly flat for the day and down 39% for the week at $1,105.

Bitcoin price for the last 14 days

Source: CoinGecko

After a few days of calm, the bitcoin and ethereum suffered major setbacks on Thursday as market participants absorbed a rate hike of 75 points largely anticipated by the Federal Reserve.

BTC has started the week at a low point of $20,111before increasing by over 12% to nearly $23,000and then give back pretty much everything he’s earned afterwards.

In the digital currency market, the price of Ethereum also rebounded. He started the day low $1,014 and reached around $1,250 after the end of Federal Reserve Chairman Jerome Powell’s press conference, a increase of more than 20%.

Is $20,000 a good number for Hold?

According to Mikkel Morch, executive director of the hedge fund in crypto-ARK36 coins, the old adage “don’t fight the Fed” has never been more relevant than it is today, the fear of interest rate hikes having largely contributed to lowering the prices of cryptocurrencies.

Read also Bitcoin: why the breakout of 30,000 could only be the beginning of the fall?

Although this was the case, it seems that the record inflation rate of last week for the month of May in the United States, coupled with recent remarks from the Fed, has already alarmed investors enough that the 75 basis point increase was widely anticipated when it was announced.

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