Cryptocurrencies Rebound, As the Fed Raises Rates by 75 Basis Points
Crypto prices surge as the Federal Reserve raised interest rates by 75 basis points on Wednesday in an effort to keep the economy from overheating. The move sent shockwaves through the financial markets, with safe-haven assets such as gold and government bonds surging.
Cryptocurrencies were no exception, with Bitcoin, Ethereum and TRX all recovered and are now trading well above their pre-Fed levels.
In the longer-term, higher interest rates could lead to inflationary pressures that would increase the price of Bitcoin as a store of value. If inflation does pick up, we could see even more money flow into Bitcoin and other cryptocurrencies as investors seek out alternatives to fiat currency.
Bitcoin and Ethereum prices hit new highs in recent times, with Bitcoin climbing above $22,000 and Ethereum rising above $1,200. The rally comes amid growing interest in cryptocurrencies from institutional investors and mainstream companies.
The digital currency reached $22,529 today, according to data from CoinGecko. Ethereum has also seen strong gains this month to its current price of $1,227.
Indeed, after the announcement was made, some cryptocurrency prices surged. Altcoins like Cardano and Solana saw even bigger gains as investors poured money into these promising projects.
The Fed’s rate hike is just one more piece of good news for cryptocurrency markets which have been on a tear in recent months. With institutional interest continuing to grow and fundamental indicators pointing to further upside potential, it seems that crypto is poised for an exciting year ahead.
Cardano’s (ADA) recent boost of 15% has brought it up to US$0.5328. This surge can be attributed to the growing interest in the Cardano project as well as the cryptocurrency market as a whole. The team behind Cardano has been working hard to promote the platform and its many features, which has led to more people taking an interest in ADA. In addition, the overall positive sentiment in the crypto world has also helped push ADA prices up.
Solana (SOL) is another coin that has seen a significant price increase recently, jumping nearly 20% to US$34.25. This can largely be chalked up to speculation surrounding the coin, as there is a lot of excitement about what Solana could potentially do. There are high hopes for this project, and as such, SOL prices have been rising in anticipation of future success. So far, Solana seems to be living up to the hype and could continue to see strong price growth in the future.
The market crash has been rough on everyone, but TRON seems to be weathering the storm better than most. The price of their USDD stablecoin is still below a dollar, but the network’s native token TRX is up about 15%. This shows that there is still some confidence in the project, despite the current market conditions.
TRON has a lot going for it that other projects don’t. They have a strong community behind them, and they are constantly innovating. Even though the price of their currency is down at the moment, I believe that it will rebound in the future and become one of the top projects in space.
The Fed’s decision to raise rates comes as no surprise to many commentators. Inflation has been on the rise for some time now, and the Fed has been widely expected to act in order to keep it under control.
The target range for interest rates is now at 1.5% to 1.75%, and the Fed is expected to continue to raise rates in order to reach its goal of 3% by the end of the year.
There are some concerns that raising rates too quickly could jeopardize the economic recovery that has been underway since the financial crisis of 2008. However, most experts believe that the Fed will be able to manage this process effectively and avoid any major disruptions.