Bitcoin, Ethereum, TRX recover as Fed bumps rates by 75 bpt
Bitcoin and other cryptocurrencies responded positively to the U.S. Federal Reserve’s move to raise interest rates by 75 basis points on Wednesday — the largest single increase since 1994 — in an effort to curb rising inflation.
See related article: Crypto on a roller coaster as market braces for Fed guidance on rates
Fast facts
- Bitcoin gained 10.5% while Ethereum was up 15.5% in the hours after the hike was announced, after taking beatings throughout the week.
- Bitcoin was changing hands at US$22,529 and Ethereum at US$1,227 at publishing time, according to data from CoinGecko.
- Major moves included Cardano’s (ADA) 15% boost to US$0.5328, and Solana (SOL), up nearly 20% to US$34.25, as of publishing time.
- TRON’s USDD is still trading lower than a dollar, but the network’s native token TRX was up about 15%, trading at US$0.063, as of publishing time.
- The Fed’s highest rate hike in 28 years comes as U.S. inflation rose to its highest point in 40 years in May.
- The Federal Open Market Committee (FOMC) target range is now at 1.5% to 1.75% and the Fed is expected to continue to raise rates to at least 3% by the end of the year.
See related article: Has ‘Crypto Winter’ arrived with Bitcoin, Ether prices falling?