the US Federal Reserve has recently announced an interest rate hike of 50 basis points. This comes after a series of 75 basis point interest rate hikes were officially released throughout the year. However, many were already anticipating a lower interest rate because the chairman of the Federal Reserve, Jerome Powell, previously announced that rate hikes would be reduced in December this year. The announcement has been received negatively by the crypto marketat the time of writing.
markets go down
On the news from the Federal Reserve adlargest crypto by market capitalization, Bitcoindecreased to $17,872 from $18,310, while, Ethereal โ the second largest crypto fell from $1350 to $1305 in price.
altcoins like XRP, Solarium Y Link of the chain it also recorded a drop in price within minutes of the announcement.
Of the top 100 coins by market cap: infinity axisChilliz, Flow and amount were the hardest hit, falling more than 3% in the past hour.
Read more: Fed raises rate by 50 bps based on market expectations, stocks fall
Meanwhile, major stock markets tumbled after the Fed announcement, with the tech-heavy Nasdaq slipping 1.5% and the S&P 500 & Dow Jones Industrial Average (DJIA) were down 0.6% and 0.5%, respectively. Prayedwhich in most cases is considered a safe haven, sank 0.6%.
Rate increases so far
The Fed raised interest rates by 0.25% in March 2022, the first hike since 2018. At its March policy meeting, it predicted six more hikes, which have since come to pass.
Read more: Crypto Expert Predicts Ethereum (ETH) Price; Time to buy?
In May, the central bank continued its economic tightening policy by announcing the first 0.5% increase since 2000. The remaining five increases, June, July, September and November, were all 0.75%, until the cut 0.5% that occurred today.
However, investors are concerned about the central bank's approach to reining in price inflation, as well as the possibility of a severe recession.
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The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrency. The author or publication has no responsibility for your personal financial loss.
