Cryptocurrency Market Reacts to Federal Reserve’s Rate Increase
- Bitcoin added almost 1% over the past 24 hours.
- Zcash (ZEC) surged by more than 23% to reach a record high.
- Currently, Bitcoin is about 40% below its October record high of $126,000.
- In March, when the Fed began tightening in 2022, Bitcoin was also around 40% below its peak.
- ETF flows showed weakness with $746 million exiting spot Bitcoin funds on Tuesday and Wednesday alone.
The recent interest-rate increase by the Federal Reserve has led to a rally in cryptocurrencies, despite making interest-bearing investments more appealing. Traders remain cautious due to historical patterns observed during previous rate cycles.
As Bitcoin currently sits at approximately 40% below its all-time high, market participants are closely monitoring potential shifts following this latest rate decision.
