What It Means For Crypto As Federal Reserve (Fed) Continues To Raise Interest Rates. In recent news, the Fed hiked an interest rate by 75 basis points.
The Raise by The Feds
Fed raises interest rates by 75bps
— Market Rebellion (@MarketRebels) July 27, 2022
During the latest meeting, the Fed decided to hike the interest rate by 75 basis points. It also increases the benchmark interest rates between 2.25% and 2.5%.
This matches with people’s predictions about the move by the Fed. Recently, the European Central Bank also made a similar decision. They raised interest rates by 50 basis points.
The Crypto Market
Right before the meeting, the crypto market, as well as stocks, have been improving. Both Bitcoin and Ethereum have increased in the past 24 hours. Based on CoinMarketCap’s report, they jumped to 5.4% and 12.5%, respectively. Not long after the announcement, Bitcoin raised 3%, while Ethereum increased by 4.8%.
It is good news for the crypto market after the ups and downs in the industry.
Central banks all over the world have been making a similar movement. They are also trying to ensure price stability and control inflation.
After the announcement, the community on Twitter has been posting their views on the matter. As the crypto community is big, some people are excited about the information, and others might not be too excited.
One account said, “The decision has sent crypto markets on a rollercoaster and has had a positive impact so far.”
The Fed raises interest rates by 0.75%. The new federal funds rate is 2.25%.
— Rollbit (@rollbitcom) July 27, 2022
Another account said, “If the USA Fed hikes interest rates by the expected 75bps, it might cause a pump for Bitcoin today.”
If the USA Fed hikes interest rates by the expected 75bps, it might cause a pump for #Bitcoin today.
When they hike interest rates by 100bps, it would be bearish and it could result in a further dump.
— Crypto Rover (@rovercrc) July 27, 2022