Cryptocurrency Market Reacts Positively to Fed Rate Increase
- Bitcoin reached $76,621, marking a gain of 0.60% since midnight UTC and up by 0.88% over the past day.
- Ether increased by 1.1%, rising to $2,444.36, while Solana (SOL) climbed by 2% to $100.57.
- The Federal Open Market Committee raised the target interest rate by 25 basis points to a range of 3.75%-4%.
- Chair Kevin Warsh indicated that inflation remains high and underlying trends have not improved significantly.
- The committee’s forecast suggests a median policy rate of only one more increase to reach a total of approximately four percent through the end of both years in the forecast.
Following the Federal Reserve’s first interest rate hike in over three years, risk assets rallied as traders responded positively to the projections for future rates. The Dollar Index fell by approximately 0.17%, while major stock indices also saw gains.
Overall, Bitcoin’s price increase aligns with broader market trends following the Fed’s announcement, highlighting its resilience amid changing economic conditions.(Source)
