Bitcoin and other cryptocurrencies responded positively to the U.S. Federal Reserve’s move to raise interest rates by 75 basis points on Wednesday — the largest single increase since 1994 — in an effort to curb rising inflation.
See related article: Crypto on a roller coaster as market braces for Fed guidance on rates
Fast facts
- Bitcoin gained 10.5% while Ethereum was up 15.5% in the hours after the hike was announced, after taking beatings throughout the week.
- Bitcoin was changing hands at US$22,529 and Ethereum at US$1,227 at publishing time, according to data from CoinGecko.
- Major moves included Cardano’s (ADA) 15% boost to US$0.5328, and Solana (SOL), up nearly 20% to US$34.25, as of publishing time.
- TRON’s USDD is still trading lower than a dollar, but the network’s native token TRX was up about 15%, trading at US$0.063, as of publishing time.
- The Fed’s highest rate hike in 28 years comes as U.S. inflation rose to its highest point in 40 years in May.
- The Federal Open Market Committee (FOMC) target range is now at 1.5% to 1.75% and the Fed is expected to continue to raise rates to at least 3% by the end of the year.
See related article: Has ‘Crypto Winter’ arrived with Bitcoin, Ether prices falling?
