Bitcoin Price Rises to $22,500 After Fed Hikes 75 Basis Points to Curb Rising Inflation

Global financial markets focused on the US Federal Reserve and its decision to raise interest rates by 75 basis points on June 15, the biggest increase in 28 years, as the central bank struggles to rein in interest rates. highest inflation in more than four decades.

Data from Cointelegraph Markets Pro and TradingView shows Bitcoin (BTC) and the broader cryptocurrency market came under pressure in the early hours of trading on June 15 amid rumors of Three Arrows Capital’s possible bankruptcy. (3AC) were spreading throughout the ecosystem, which is still struggling with the current Celsius breakup.

Daily performance of the cryptocurrency market. Character font: Coin360

Following Federal Reserve Chairman Jerome Powell’s announcement of a 75 basis point hike, the price of Bitcoin briefly climbed to $22,520 before falling back to $21,500.

BTC/USDT 4 hour chart. Source: Trading View

The altcoin market also saw a brief price rally as expectations of a possible 100 basis point rally failed to materialize and the market largely got what it expected from the Federal Open Market Committee (FOMC) meeting. ) of 2019. June 15.

Traditional markets responded positively to the news, with the S&P 500, Dow and NASDAQ trading in the green for the day, but traders should see how the markets perform at the daily close and early morning tomorrow.

Analysts Digest Rate Rise and Its Possible Impact on Crypto Prices

Shortly after Powell announced the 75 basis point rate hike, projections of when the Fed would start cutting rates started rolling with the prevailing consensus that they would begin in 2024.

The main reason for the rise in interest rates was rising inflation, which came in at an 8.6% year-on-year increase according to the latest Consumer Price Index data ( CPI), higher than expected by analysts.

Some analysts have begun to speculate that the reason for the biggest rate hike in 28 years is part of an effort by the Federal Reserve to try to get ahead of the curve and establish enough headroom. to be able to suspend future hikes if economic conditions prevail. keep getting worse.

In general, the rise in interest rates, which was widely expected, seems to have been priced into the cryptocurrency market, with prices remaining relatively stable following the announcement and, at present, more specific developments in the Cryptocurrencies dominate industry headlines.

The total market capitalization of the cryptocurrency currently stands at $931,000 and the Bitcoin dominance ratio is 44.5%.

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