ETH and BTC Track the stock market movements after the FED rate hike announcement and the crypto market cap surged 6% in one day. So let’s read more in our latest altcoin news today.

Interest rates are up half a percentage point, but the crypto and stock markets are being led by a larger chunk. The crypto market is up 6% over the past 24 hours, with top coins ETH and BTC trailing the stock market at roughly the same rate. The biggest gainer in the top 10 was Cardano’s ADA, which saw a 13% surge, and Solana, XRP, BNB, and Luna all saw gains of around 5%. The upward adjustment aligns well with stock returns in the Dow Jones Industrial Average and Nasdaq, which gained 2.8% and 3.2% before the close. The biggest factor affecting the numbers is the Federal Reserve’s decision to raise interest rates by half a percent, the biggest hike since 2000.

BTC price
BTC 24-hour price chart (Source: Coingecko)

As the Fed raised interest rates, it increased borrowing costs for financial institutions, which had a domino effect, and the idea is to slow or reverse inflation levels by making money more expensive to raise. So if this is the case, why the exchange to have such a banner tag? The quick answer is that most investors thought the rate hike was going to be even bigger. Alison Boxer was quoted as saying:

“That was the main message from the press conference [Fed Chair] Powell pared back the 75 basis point hikes that markets had priced in.”

eth daily
ETH 24-hour price chart (source: coingekco)

The Fed is poised to raise interest rates further in the coming months, and Powell indicated that a future 0.75 percentage point hike is unlikely. BTC was once seen as a digital alternative to gold, while its inflation-resistant store of value took its cues from the stock market. Bitcoin’s price action is highly correlated with the rest of the crypto market, but while crypto is up today, it has been less flat over the past week with a market cap of $1.8 trillion. Technology stocks have been under pressure this year, but the total market cap started the year at $2.2 trillion and is down a double-digit percentage.

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