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Bitcoin pumps nearly 10% to above $22.5K as Fed hikes rates by 0.75%

ByNdasi Tata

Jul 28, 2022
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1658950096910 575f066d 5411 4fa5 976e 3c68dcad5b57

Bitcoin (BTC) rose sharply on Wednesday to break above $22,000 as risk appetite resurfaced following the US Federal Reserve’s move to raise interest rates by 75 basis points.

BTC was trading around $22,575 at 15:20 pm ET on Wednesday, up nearly 10% in the past 24 hours. 

Of these gains, about 5% came on the back of Fed’s rate hike. Ethereum (ETH) also rose sharply amid the positive market reaction, breaking to highs of $1,580 with over 15% gains in 24 hours.

Stocks also rallied after the rate hike and as Fed Chair Jerome Powell confirmed the central bank’s desire to battle inflation. The S&P 500 was up 2.43%, the Dow Jones Industrial Average had added more than 450 points while the Nasdaq was 3.9% higher.

Among crypto stocks, Coinbase (COIN), which tanked more than 21% on Tuesday to hit lows of $52.93, was up more than 11% at the time of writing. The Coinbase stock was trading around $54.84.

Fed hints at further rate hikes

This is the second time the Fed has increased the interest rates by 0.75% and has the rate at levels monetary policy makers and economists see as neutral.

However, Powell noted in a speech after the Federal Open Markets Committee (FOMC) meeting that inflation remained well above 2%, hinting at further hikes.

“Today, the FOMC raised its policy interest rate by three-quarters of a percentage point and anticipates that ongoing increases in the target range for the federal funds rate will be appropriate,” Powell said.

Powell did note that it is possible policymakers would look to slow down on the rates in the near future.

The post Bitcoin pumps nearly 10% to above $22.5K as Fed hikes rates by 0.75% appeared first on CoinJournal.

Ndasi Tata

Ndasi Tata is a Cameroonian-born Bitcoin entrepreneur and former state journalist who's also known for being a Bitcoin and Blockchain advocate. He's a crypto lover and reporter and has promoted several crypto projects within the African Continent. He uses a variety of social media and online channels. In addition to running a successful Facebook page with thousands of fans, he also promotes blockchain and bitcoin development initiatives on the well-liked YouTube channel #cryptoafrica-now. He earned an M.Sc. from the University of Nicosia in Cyprus in Blockchain and Digital Currency. At the University of Nicosia, Andreas Antonopoulos, Ph.D., and Antonis Polemitis, Ph.D., serve as role models.

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