Total cryptocurrency market capitalization rose by 5.4% as the U.S. Federal Reserve announced it is raising interest rates by 50 basis points, the sharpest since 2000.

See related article: Has Bitcoin become a victim of its own success?

Fast facts

  • The increase creates a target range of between 0.75% and 1% following a 25 basis point increase in March — the first interest rate rise since December 2018.
  • March recorded the fastest rising inflation rate in the U.S. with a CPI of  8.5%.
  • “Inflation is much too high, and we understand the hardship it is causing. We are moving expeditiously to bring it back down,” said Fed Chair Jerome Powell.
  • Zilliqa (ZIL) led the sharp rise in the cryptocurrency market with 38.1%, with all top 100 cryptocurrencies by market cap landing in the green.
  • Bitcoin was trading at US$39,670 and ETH was priced US$2,945, at press time.
  • The Dow Jones Industrial Average closed 2.81% higher, S&P 500 closed up 2.99%, and the Nasdaq Composite by 3.19%. 

See related article: Federal Reserve to taper bond purchases, prompting concerns over BTC impact