Federal Bank raising the rates by 75 basis points was taken positively, and the crypto markets traded higher after the news.
The rate hike by FED was highly anticipated by the investors of both the crypto and traditional financial markets. And it matched the expectations as well.
On Wednesday, the price of Bitcoin (BTC) recovered, jumping 2% in early morning trade and leaping over 10% after the Federal Reserve said it was increasing interest rates by 0.75 percentage points.
At the time of writing this article, Bitcoin (BTC) is up 7.62% in the last 24 hours.
Even the traditional market was in the green, as the investors saw the rate increase favourably.
The S&P 500 and the tech-heavy Nasdaq rose 1.34 per cent and 2.44 per cent, respectively. The increase in the Dow Jones Industrial Average was only a percentage point.
Ethereum also rose and is currently up at 10.52%, according to CoinMarketCap.
Additionally, the Ethereum blockchain successfully implemented a “Shadow Fork” two days earlier.
Ethereum is close to its anticipated shift from proof-of-work to proof-of-stake, which is more scalable and environment-friendly.
The recent FED rate hike proved to be some relief for the already suffering crypto markets.
Since mid-June, the biggest cryptocurrency in the world, Bitcoin (BTC), has been trading between $20,000 and slightly over $24,000 after a severe drop erased 50% of its value this year.
“The conclusion of Wednesday’s Fed meeting opens up a summer window for a Bitcoin relief rally, given we now have two months until policymakers next deliberate on monetary policy,” said Antoni Trenchev, Co-founder of Nexo.
The crypto market saw some of the worst events as billions of dollars got wiped out. Not to forget, big companies like Celsius and Three Arrow Capital declared bankruptcy bringing down many investors with them.