The recent interest rate hike by the FED has taken the benchmark to a 22-year hike. The wider financial markets were quick to respond to the increase of 25 basis points, but the cryptocurrencies remained relatively stable. As a result of the quarter percentage point increase, the fed funds rate will now range between 5.25%-5.5%. Considering how cryptocurrencies were not affected that much, it can be assumed that the wider crypto market has now listened to the FED and understands its plans.
The chair of the FED, Jerome Powell, made it known that the bank would continue to increase interest rates for an unspecified amount of time. He added,
‘I would say it’s certainly possible that we will raise funds again at the September meeting if the data is warranted. And I would also say it’s possible that we would choose to hold steady and we’re going to be making careful assessments, as I said, meeting by meeting.’
Cryptocurrencies Remain Unfazed
Following the announcement of the most recent hike, little to no change was observed within the crypto market. Cryptocurrencies were seen trading in the green even after the announcement. Some major crypto tokens and their recent performance following the announcement have been mentioned as follows:
- Bitcoin (BTC): The largest token by market cap previously dipped to the $29,200 mark following a decline in its overall dominance. Despite the increase in interest rates, Bitcoin has remained relatively stable. At the time of writing, Bitcoin (BTC) is trading for $29,499 after experiencing a surge of almost 1.08% in the previous 24 hours. Similarly, the market cap of the token is currently $573 billion.
- Ethereum (ETH): ETH joins the ranks of the cryptocurrencies that remained unfazed following the announcement. The leading altcoin has surged by 1.49% within the previous 24 hours and is currently trading for $1,879. Similarly, the total market cap of the token currently stands at the $226 billion mark.
- Solana (SOL): SOL was already riding high since the last week, and the recent development did not hinder its growth. Over the last 24 hours, SOL has rallied by a staggering 6.33% and the increase has catapulted its trading price to $25.21. Furthermore, the total market cap of SOL is currently $10 billion.
- Cardano (ADA): ADA was seen to remain strong despite the increase in interest rates by the FED. Currently, the token has surged by a decent 3.20% since the previous 24 hours and is trading for $0.3111.
- Dogecoin (DOGE): Dogecoin was already receiving mixed market sentiments due to the ongoing developments between Elon Musk, Twitter, and X. The token had a positive start to the week due to the suspected integration in Twitter and is currently up by 0.89%. Similarly, it is currently trading for $0.07924.
