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The Federal Reserve, chaired by Jerome Powell, publication Raise US interest rates by 75 basis points. The increase was in line with market consensus. Analyst It is considered to be priced in the traditional market.
The crypto market is reacting positively, with Bitcoin up 3% shortly after the data was released. Bitcoin prices rose early Wednesday, rising 3% the day before the FOMC statement, after falling 13% from local highs on July 20th.
Bitcoin prices have risen prior to the last two FOMC meetings and have fallen 15-20% over the next three days. However, due to the previous increase in January and March, Bitcoin initially fell and then rose by about 7% in the next few days. The graph below shows Bitcoin price movements after the last four FOMC meetings.
Ethereum rose 11% on Wednesday prior to the Fed’s announcement. After the release of the FOMC statement, which responded more positively than Bitcoin, its price rose another 5%. Ethereum rose 13% the day after the FOMC statement was released.
Update 8.18PMBST: At a press conference following the FOMC statement, Chairman Jerome Powell said:
“The incoming data will determine if another” unusually large “rate hike, such as 75 basis points, will be needed at the next Federal Open Market Committee meeting. “
After the press conference reached $ 22.8K, Bitcoin continued to rise and Ethereum touched $ 1600. Ethereum is up 6% against Bitcoin on the day.
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This is a developing story, and the article will be updated when the rate hike fallout comes into effect.
