{"id":46046,"date":"2022-03-23T12:07:36","date_gmt":"2022-03-23T11:07:36","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=46046"},"modified":"2022-03-23T12:07:36","modified_gmt":"2022-03-23T11:07:36","slug":"fed-comments-send-stocks-and-treasury-yields-rising-how-will-it-affect-crypto-market","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/fed-comments-send-stocks-and-treasury-yields-rising-how-will-it-affect-crypto-market\/","title":{"rendered":"FED Comments Send Stocks and Treasury Yields Rising, How Will It Affect Crypto Market?"},"content":{"rendered":"
Federal Reserve Chair Jerome Powell\u2019s recent message that the central bank could act more aggressively in its fight against the inflation is sending US Treasury yields and stock higher<\/strong>. The crypto market is also rising but it is uncertain how the upcoming hikes will affect the market.<\/p>\n <\/p>\n According to a Reuters’ report<\/a> on Tuesday, March 22, Jerome Powell<\/strong>, the chair of US Federal Reserve (Fed)<\/strong>, in a National Association for Business Economics conference on Monday, March 21, said that the US Fed could raise the \u201cfederal funds rate by more than 25 basis points at a meeting or meetings.\u201d<\/em><\/p>\n Reuters cites Jerome Powell saying:<\/p>\n \u201cIf we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so.\u201d<\/em><\/p>\n According to Reuters\u2019 data<\/a>, the hawkish comments from the central bank chair helped the US 10-year Treasury yield to march higher at 2.38%<\/strong> on Tuesday, its highest since 2019. US tech stocks also ended higher as investors bought the dip. Apple, Microsoft, Amazon.com Inc, Alphabet Inc (GOOGL), and Tesla Inc (TSLA<\/strong>) rose higher on NASDAQ<\/strong>.<\/p>\n Following the stocks, Bitcoin and the cryptocurrency also posted some significant gains on Tuesday. <\/strong>As Crypto Economy discussed<\/a>, BTC\/USD<\/strong> pair surged above $43,000 and Ethereum (ETH)<\/strong> climbed nearly 4% to break the $3,000 threshold. Cardano (ADA)<\/strong> and Bitcoin Cash (BCH)<\/strong> were the most significant gainer on Tuesday, March 22.<\/p>\n <\/p>\n In theory, the cryptocurrency is expected to perform independently of regular financial markets, but they have recently been found to be connected with other assets like stocks<\/strong>. Although there are other factors involved in the recent crypto market moves, its performance has always co-related with the stocks.<\/p>\n According to financial experts, with more interest rate hikes coming, it will be hard for equities to have a positive performance<\/strong>. So, given the co-relation of the crypto market with the stocks, the community can expect dips in the market.<\/p>\nHow Interest Rate Hikes Will Affect the Crypto Market?<\/strong><\/h2>\n