Another Fed’s attempts to tame inflation with an interest rate hike caused unusual upheaval in the crypto market: reason unveiled
After another 75 percentage point rate increase announced by the Fed, the price of Bitcoin (BTC) surged by around 8%. It continued the rally with a 3,13% increase over the last 24 hours, reaching $23,9K (per Coinbase data). Ethereum is also showing growth. The #2 altcoin increased by 4,81% in price. Overall, the crypto market surged 3,71% in the last 24 hours.
Such an activity surprised many since increasing interest rates usually come along with a pullback of market investments. The only explanation possible is that markets have been preparing for worse.
The crypto community has been bustling and sharing mixed reactions ever since. Experts and investors disagree on whether the latest pump will have enough momentum to sustain upward or will it be short-lived. Anyway, there are a lot of people who see potential in the current market prices. The trading volumes went up double digits.
However, the upcoming trends will largely depend on the broader economic landscape. For instance, yesterday’s GDP data revealed that the US economy shrank at an annual 0.9% pace in the second quarter. At the same time, the government didn’t officially declare a recession. How will the crypto market react to that? We’ll see in the coming days.