Prices in the cryptocurrency market plunged across the board after the Federal Reserve signaled the possibility of resuming its interest rate hikes after pausing its tightening cycle.
โThe reaction aligns very closely with what was seen in other risk assets, in what markets currently interpret as a slightly more hawkish-than-expected Fed,โ said Stephane Ouellette, chief executive officer of FRNT Financial Inc., a institutional platform. focused on digital assets. โAs in most markets, there are some who are speculating about breakouts around these events. I imagine some of those short-term trades unwound, leading to sell-offs and a bounce.โ
