Mon. Apr 15th, 2024

After the Federal Reserve, also called the Fed, announced that it would increase interest rates by 0.75 percentage pointsFollowing the announcement, the price of Bitcoin soared more than 9% in less than an hour, reversing the week’s previous drop. Although the increase in interest rates is not good for Bitcoin, pushing it down, the reason for the price increase is that the market already expected this value. In other words, the greatest danger was an increase of more than 1 percentage point. Other cryptocurrencies followed the same fate as Bitcoin, also in strong recovery. The biggest highlight is ethereumseeking encouragement to continue its “Migration Rally” that had already helped the coin surge 60% in recent weeks.

Investors were already expecting a rise in interest rates

With the United States experiencing the highest levels of inflation in the last four decades, the Fed had to step in to control the purchasing power of its currency. However, investors were already expecting the 0.75 percentage point increase, which helped lift the price of stocks and cryptocurrencies as well. This is the fourth increase of the year made by the Federal Reserve, jumping the interest rate to 2.25 – 2.5% after the increase made this Wednesday (27). As a highlight, Jerome Powell, chairman of the Fed, said there are risks on both sides, both in raising interest rates too much and raising them too little. Fearing the rise was bigger and pleased with 0.75 percentage point, Bitcoin investors were quick to respond to the Fed meeting, causing a large green candle to appear on their chart.

BTC/USD rises after Fed meeting. Source: TradingView Thus, Bitcoin managed to reverse the losses accumulated at the beginning of the week, also showing good volume. Now, his challenge is to create a rally higher by breaking the previous high of $24,280 if he wants to continue to give the bulls hope.

Crypto Market Broadly Accompanies Bitcoin After Announcement

Going from an hour to a day, the appreciation is even more noticeable, jumping more than 9% this Wednesday. However, the highlight is Ethereum, which is trying to continue its migration rally. In the last 24 hours alone, Ether (ETH) is up 17.35%; however, like Bitcoin, it needs to create a new top to beat the bears. Other cryptocurrencies followed the same path as the two largest in the market, as shown below.

Cryptocurrency heat map, after the Federal Reserve meeting. Source: Coin360. Finally, it seems that the cryptocurrency market is calmer with the speeches of the Fed, giving hope that the bottom has already been reached and that the second half can reverse the falls of the previous one.

By Farwa Raza

Farwa Raza is a writer who specializes in news articles. She has been writing on wttspod.com for over one years, and during that time she has written over 100+ articles on various topics ranging from politics to entertainment. Her goal as an author is to provide readers with the latest news stories while also providing her own opinion on them.