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.
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.
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.
BREAKING: The largest rate hike since 1994 from the Fed.
However, Fed policymakers expect them to start cutting rates in 2024.
—Michael van de Poppe (@CryptoMichNL) June 15, 2022
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.
They seem to be going back to what I thought they would be doing in January (even before Ukraine). Frontload rides that allow them to hit the pause button later when things might still be a little too hot. I would expect to hear warmongering rhetoric today (I have to walk anyway).
– The Telescope âœª (@HayekAndKeynes) June 15, 2022
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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