Bitcoin, Ethereum, and stocks appear to be on the rise following the fourth federal rate hike.
Bitcoin followed the direction of other risk assets today, as is normal for it, as the Federal Reserve maintained its aggressive monetary policy. Bitcoin behaved normally in this situation.
The Federal Reserve announced today that it will maintain its aggressive monetary policy to combat inflation, and both traditional and cryptocurrency markets are reacting positively to the news. The announcement was meant to battle inflation, and as a result, the Federal Reserve would maintain its strong monetary policy.
CoinGecko estimated the price of Bitcoin at $20,650 at the time this article was written. This result shows a minimal 1% increase over the previous twenty-four hours. Bitcoin is the most valuable cryptocurrency in terms of market capitalization.
Ethereum, the second largest cryptocurrency by market capitalization, gained 1.3% and was trading at around $1,600 per coin at the time this phrase was written.
The Fed’s pronouncement was followed by continuing rises in stock prices. The previous day’s Wall Street trading was choppy due to a statement issued the day before claiming that the labor market was strong and that, as a result, the Federal Reserve would continue to raise interest rates.
The Federal Reserve raised interest rates today by 75 basis points, the fourth time this year, in an effort to combat inflation, which is currently at levels not seen in the United States in the previous four decades.
Despite the fact that the Federal Reserve’s aggressive monetary policy has caused investors to flee to safe havens such as the US dollar, which has seen its value soar, it is expected that the central bank will soon slow the pace at which it tightens, which is encouraging news that could have prevented a sell-off today. Despite the fact that investors have fled to safe havens such as the US dollar as a result of the Federal Reserve’s aggressive monetary policy, the value of the US dollar has increased.
“In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and the developments in economic and financial markets,” the Federal Reserve said earlier today.
Bank of America stated in a report released on Wednesday that it believes “the Chair will open the door to a slower pace of hikes beginning in December.” This prediction was made in response to the Federal Reserve’s decision to decrease the pace of rate hikes beginning in December.
The recent spike in inflation, Russia’s invasion of Ukraine, and Europe’s energy issue are just a few of the numerous reasons why investors around the world have been selling their stock. Decrypt conducted a survey of industry experts and discovered that many of them believe that the Fed’s aggressive policy stance could be detrimental to the bitcoin sector.
“Digital assets are likely to struggle here if the Fed maintains its aggressive stance on battling inflation,” said Edward Moya, an Americas senior market analyst for OANDA. Moya was speaking about the United States.
“The economy is not falling swiftly enough to warrant a tightening move, and this may have an impact on cryptocurrencies,” he added. “The economy is not weakening swiftly enough to warrant a tightening change.” “At this time, the economy is not slowing down quickly enough to justify a change toward tightening monetary policy.” According to Moya, the association between Bitcoin and stock prices in the United States has not changed in recent times and is unlikely to change until the pace of inflation is significantly reduced.
Both Bitcoin and Ethereum have maintained their previous week’s gains, with Bitcoin gaining by 2.1% and Ethereum increasing by 8.4%. And Dogecoin, the first “meme coin” promoted by Elon Musk, is an anomaly in the digital realm: the coin has risen by 106% in the last week since the world’s richest man purchased Twitter. As a result, Dogecoin is an anomaly in the digital sector.
For More Stocks And Investment Related News, Click Here.
