Bitcoin price climbs to $22.5K after Fed 75 basis point hike aims to cap runaway inflation
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BTC and altcoins generated nominal gains after the Federal Reserve raised the benchmark interest rate by 0.75%, the largest hike in 28 years.
Global financial markets were squarely focused on the U.S. Federal Reserve and its decision to raise interest rates by 75 basis points on June 15, the largest increase in 28 years as the central bank fights to tamp down the highest inflation rates in over four decades.
The altcoin market likewise saw a brief price pump as the dire predictions of a possible 100 basis point hike failed to materialize and the market got largely what it expected from June 15 Federal Open Market Committee (FOMC) meeting.
Traditional markets responded positively to the announcement with the S&P 500, Dow and NASDAQ all trading in the green for the day, but traders would be wise to see how markets behave at the daily close and tomorrow's opening bell.
Related: Bitcoin bounces 8% from lows amid warning BTC price bottom 'shouldn't be like that'
Analysts digest the rate hike and its possible impact on crypto prices
Shortly after Powell announced the 75 basis point hike, projections on when the Fed would start to cut rates started rolling in with the dominant consensus being that they would begin in 2024.
BREAKING: The biggest rate increase since 1994 from the FED.
However, expectations from FED policymakers are that they'll be starting to cut rates in 2024.
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