For months, the US Federal Reserve has been on its toes to combat the inflation draining the pockets of Americans, on Wednesday, it took another measure to bring down the prices of goods and services. How did the crypto market react to this event?
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Crypto Market React After Fed Rate Hike
On Wednesday, January 31, the Federal Open Market Committee (FOMC) met to address the rise in prices of goods and services that have been making life tougher for Americans.
In its quest to combat inflation, the Fed on Wednesday raised interest rates by 25 basis points, bringing the interest rates to 4.75%, and according to the chairman of the US Federal Reserve Jerome Powell, the Fed is likely to continue to raise the interest rates until the prices of goods and services come down.
However, following the announcement on Wednesday, Bitcoin didn’t at first react to the rate hike, but some hours later, there was a notable change in its price, BTC, however, first plunged below $23k and later soared to $24.3k according to Bitstamp, this, however, marked the highest price of Bitcoin since 5 months, it is also the best January for Bitcoin since 2013 (40% increase in January alone).
While the price of Bitcoin reacted, altcoins were not left out of the event, Ethereum for instance soars to $1,700 but later dipped, ADA, Shiba Inu, Avalanche, Polkadot, Litecoin, and Solana amongst others are altcoins that reacted to the rate hike with a notable increase in their prices.
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