• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
Fed rate hike

Fed Rate Hike: Cryptos Hammered As Central Bank Pumps Interest Rates By 0.75 Points

Christian Encila
by Christian Encila
3 years ago
·
Posted in Bitcoin, Fed Rate Hike
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The much-anticipated Fed rate hike is now out and, as expected, dealt a heavy blow to the broader crypto market on Wednesday.

The U.S. Federal Reserve increased its policy interest rate by three-quarters of a percentage point, extending it to a range of 3 to 3.25 percent.

This number represents a huge increase from March, when the federal funds rate was near zero, and the subsequent increases represent the central bank’s quickest policy shift since the 1980s.

Bitcoin (BTC) fluctuated in value in the hours following the news, before falling in tandem with U.S. stocks in the afternoon.

Related Reading: Microstrategy Bitcoin Bet Loss Grows To $1.5 Billion, Stocks Down After $6 Million BTC Buy

Bitcoin Takes A Beating, Loses $19,000 Handle

As of this writing, Bitcoin is trading at $18,730, down 1.5% in the 24 hours, data from Coingecko show. As recently as last week, the largest cryptocurrency had traded above $22,000.

Ethereum’s decline was not as severe, but still more than $50 lower. After the Fed rate hike’s statement, prices fell by more than 4 percent in both cases.

Bitcoin (BTC) price as the Federal Reserve announced its latest rate increase. Image: CoinGecko

Recently, the price of Ether was approximately $1,250, a 5.5% decrease from the previous day. The price of the second-largest cryptocurrency by market capitalization has been falling since last week’s Merge.

Related Reading: Fed Rate Hike: Huge ‘Wrecking Ball’ About To Slam Into Bitcoin, Other Crypto

Broader Crypto Market Hates Fed Rate Hike 

Members of the Federal Open Market Committee (FOMC) have hiked interest rates by 75 basis points three times in a row, indicating how severe inflationary pressures have become in America. Clearly, the broader cryptocurrency market dislikes it.

Since inflation is causing the Fed to raise interest rates, inflation-related economic data has been very significant for the cryptocurrency market.

As a result, cryptocurrencies have recently responded badly to the Fed rate hike report. For instance, after the U.S. Bureau of Labor Statistics reported August inflation data, Bitcoin prices fell 5% and Ethereum prices plunged 7% over the subsequent 24 hours.

“We have got to get inflation behind us,” Powell said in quotes by The New York Times during his post-meeting news conference. “I wish there were a painless way to do that, but there isn’t.”

Federal Reserve Chair Jerome Powell. Image: Getty Images

Powell’s words highlight a difficult situation for the central bank. The inflation rate has remained persistently high, and it is proving tough to rein it in.

However, the extent to which crypto values can fall this year is still uncertain. Even in the absence of adverse news from inflation and the Fed rate hike, some experts believe Bitcoin is still headed for a big decline to the $10,000 region this year.

“I don’t foresee crypto, especially BTC and ETH, bucking the Fed’s influence any time soon,” Riyad Carey, a research analyst at crypto data firm Kaiko, said, adding this is yet another reminder that “crypto moves at the whims of the Fed.”

Meanwhile, Michael Saylor, chairman and co-founder of MicroStrategy, stated that Bitcoin might return to its November high of $68,990 “sometime in the next four years” and reach $500,000 in the following decade if its market capitalization matches that of gold.

BTC total market cap at $356 billion on the daily chart | Source: TradingView.com

Featured image from The Crypto Basics, Chart: TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christian Encila

Christian Encila

Follow

Christian, a journalist and editor with leadership roles in Philippine and Canadian media, is fueled by his love for writing and cryptocurrency. Off-screen, he's a cook and cinephile who's constantly intrigued by the size of the universe.

Full Profile

Related Posts

Bitcoin

Bitcoin Negative Divergence Hints At Imminent Selling Pressure—Is ‘Uptober’ Under Threat?

7 hours ago
Bitcoin

Fed Chair Choice May Be Bitcoin’s Biggest Bull Trigger, CEO Says

19 hours ago
Liczba milionerów kryptowalutowych wzrosła

Liczba milionerów kryptowalutowych wzrosła o 40%. Rynek przekracza 3,3 biliona dolarów

3 days ago
Bitcoin

Bitcoin To Retain Bullish Bias If Price Holds Above $114K — Here’s Why

6 days ago
Bitcoin LTH Profitability Outpaces STHs: Is A New Bullish Phase About To Commence?

Bitcoin LTH Profitability Outpaces STHs: Is A New Bullish Phase About To Commence?

1 week ago
Bitcoin

5 Years Left: Solana Co-Founder Urges Bitcoin Community To Brace For Quantum Threat

1 week ago
Please login to join discussion

Premium Sponsors

Press Releases

  • 上線倒計時:僅剩25天可搶購 Snorter Bot 代幣

    2 days ago
  • 加密錢包掀起發幣熱潮 Best Wallet...

    4 days ago
  • Bitcoin Hyper

    ChatGPT предсказва следващата 1000x...

    5 days ago
  • Snorter надхвърли $4 милиона след...

    6 days ago
  • Experience the Next Chapter of Pickleball with the $PKL Token Presale.

    Experience the Next Chapter of Pickleball with the $PKL...

    1 week ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.