Cryptocurrency Accepts 75bps US Fed Rate Hike, Bitcoin Surges 3% Intraday

The cryptocurrency markets accept the 75 bps interest rate hike by the US Federal Reserve, as anticipated. Today, on September 22, at 6.04 pm UTC, Bitcoin gained by 3.05% intra day, and was quoted at US$ 19,027.30. Yesterday, Bitcoin closed at US$ 18,465.00. In the last 5 days, Bitcoin fell by 5.40%. In the past 1 month, it has dropped by 11.08%. Additionally, in the last 6 months, Bitcoin plunged by 55.09%.

Other large cryptocurrencies are also up today, reacted positively after the Fed's decision. Ethereum was quoted at US$ 1,285.81, up by 3.22%. Yesterday, Ethereum closed at US$ 1,245.65. Litecoin was quoted at US$ 52.77, up by 3.07%, Dogecoin was quoted at US$ 0.0592 down by 3.48%, and Cardano was quoted at US$ 0.4540 up 3.39% today, till last traded.

The US Fed increased the interest rates by 75 bps for a third straight season, as a hawkish stance. The CPI inflation remained stubbornly high at 8.3% in August in the US. The Fed is trying to restrict inflation to 2%. Hence, the central bank is stepping up to squeeze liquidity in the country. The consensus among the Fed officials involved in the latest policy decision indicates that the central bank is ready to hike the rate by a total of 1.25% at its 2 remaining Federal Open Market Committee (FOMC) meetings in 2022. The crypto market will react accordingly.

However, the US stock markets are down in response to that. S&P 500 was down by 0.90%, stood at 3,755.87, and Nasdaq Composite was down by 1.64%, stood at 11,036.55, at the time of writing. On the other hand, the US Dollar index gained to 111.34, up by 0.63%, till last traded.