Crypto Shrugs Off Rate Shock as Ether Surges 8% Amid Hawkish Fed Outlook

The crypto market is defying expectations as inflation numbers come in hotter than anticipated. Despite a hawkish Federal Reserve outlook, Bitcoin and Ethereum are rising, with Ethereum up over 8% since the data was released.

The rate hike expected next week has sent bond traders scrambling, with yields on the 10-year U.S. Treasury climbing to just shy of 5%. However, the crypto market is being carried by forces that have little to do with the yield curve.

U.S. spot Bitcoin ETFs have seen seven consecutive days of net inflows totaling $2.5 billion, while Ethereum products have pulled in roughly $863 million in net inflows this year. This influx of capital has helped drive prices up, with over $4.3 billion in short positions wiped out.