Fed hikes interest rates by 75 basis points; how are the crypto markets reacting?
The crypto markets displayed a surge following the rate hikes, and the experts feel it may not last.
- Jun 16, 2022,
- Updated Jun 16, 2022 11:58 AM IST
The Federal Reserve (Fed) increase of interest rates by 0.75 percentage points, has not generated a double-digitshock in the crypto markets, instead, cryptocurrencies showed a surge following the announcements. Experts however predict, that the surge may be short-lived.
Bitcoin surged quickly after the announcement, reaching above $21,000 levels. It recovered from an 18-month low. Altcoins like Solana and Cardano witnessed a double-digit recovery, following a turbulent week.
Ripple and BNB rose 9.8 per cent and 7.04 per cent respectively, whereas tokens like Dogecoin, Polkadot, and Avalanche all showed double-digit short-lived uptrend. They rallied 13.73 per cent, 11.26 per cent and 14.59 per cent respectively.
The global market cap also rallied around 4 per cent and settled at $ 950 billion, as per data from CoinMarketCap.
The WazirX Trade Desk told Business Today, “Bitcoin continued to remain within the 21K to 22K zone, recovering marginally last night after the U.S. federal Reserve hiked the interest rate by 75 basis points.”
They added, “ The weekly trend for the BTC is traversing within an ascending channel pattern.”
But experts believe that this recovery might be short-lived. Sharat Chandra, vice president of Research and Strategy at EarthID told Business Today, “The overall cryptocurrency market sentiment continues to be bearish, and volatility will be around."
Chandra explained, “Four decade-high inflation warranted a decisive action. The rate hike of 75 basis points was on the anticipated lines, and markets had factored in Fed's move.”
The Federal Reserve (Fed) increase of interest rates by 0.75 percentage points, has not generated a double-digitshock in the crypto markets, instead, cryptocurrencies showed a surge following the announcements. Experts however predict, that the surge may be short-lived.
Bitcoin surged quickly after the announcement, reaching above $21,000 levels. It recovered from an 18-month low. Altcoins like Solana and Cardano witnessed a double-digit recovery, following a turbulent week.
Ripple and BNB rose 9.8 per cent and 7.04 per cent respectively, whereas tokens like Dogecoin, Polkadot, and Avalanche all showed double-digit short-lived uptrend. They rallied 13.73 per cent, 11.26 per cent and 14.59 per cent respectively.
The global market cap also rallied around 4 per cent and settled at $ 950 billion, as per data from CoinMarketCap.
The WazirX Trade Desk told Business Today, “Bitcoin continued to remain within the 21K to 22K zone, recovering marginally last night after the U.S. federal Reserve hiked the interest rate by 75 basis points.”
They added, “ The weekly trend for the BTC is traversing within an ascending channel pattern.”
But experts believe that this recovery might be short-lived. Sharat Chandra, vice president of Research and Strategy at EarthID told Business Today, “The overall cryptocurrency market sentiment continues to be bearish, and volatility will be around."
Chandra explained, “Four decade-high inflation warranted a decisive action. The rate hike of 75 basis points was on the anticipated lines, and markets had factored in Fed's move.”