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Federal Reserve announces 75bps rate hike; Bitcoin up 3% following the news Federal Reserve announces 75bps rate hike; Bitcoin up 3% following the news

Federal Reserve announces 75bps rate hike; Bitcoin up 3% following the news

The FOMC meeting statement has revealed a 75bp interest rate hike - Bitcoin was up 3% after the news broke.

Federal Reserve announces 75bps rate hike; Bitcoin up 3% following the news

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

The Federal Reserve, chaired by Jerome Powell, has announced that it will raise interest rates in the U.S. by 75 basis points. The increase matched the market consensus, which some analysts deemed to be priced into the traditional markets.

The crypto markets have reacted positively, with Bitcoin up 3% in the moments after the data was released. Bitcoin’s price had been moving upwards earlier on Wednesday, up 3% on the day prior to the FOMC statement after declining 13% since the local high on July 20.

btc rates
Source: TradingView

The price of Bitcoin has risen ahead of the last two FOMC meetings, with the price falling between 15-20% over the subsequent 3 days. However, the previous increases in January and March saw Bitcoin initially fall before rallying around 7% in the days following. The chart below shows the Bitcoin price movement after the last four FOMC meetings.

fed rates
Source: TradingView

Ethereum was up 11% on Wednesday ahead of the FED announcement. Its price jumped a further 5% following the release of the FOMC statement reacting more positively than Bitcoin. Ethereum is now up 13% on the day in the moments after the FOMC statement was released.

eth rates
Source: TradingView

Update 8.18 PM BST:  During the press conference that followed the FOMC statement, chairman Jerome Powell stated

“The incoming data will determine whether another “unusually large” rate increase such as 75 basis points may be needed at the next Federal Open Market Committee meeting”

Bitcoin continued to climb following the press conference reaching $22.8K, and Ethereum touched $1600. Ethereum is now up 6% against Bitcoin on the day.

This is a developing story, and the article will be updated as the fallout of the rate hike comes into effect.

Bitcoin Market Data

At the time of press 8:21 pm UTC on Jul. 27, 2022, Bitcoin is ranked #1 by market cap and the price is up 8.95% over the past 24 hours. Bitcoin has a market capitalization of $434.45 billion with a 24-hour trading volume of $30.51 billion. Learn more about Bitcoin ›

Bitcoin

8:21 pm UTC on Jul. 27, 2022

$22,739.76

8.95%
Crypto Market Summary

At the time of press 8:21 pm UTC on Jul. 27, 2022, the total crypto market is valued at at $1.04 trillion with a 24-hour volume of $77.75 billion. Bitcoin dominance is currently at 41.82%. Learn more about the crypto market ›