Fed Hikes Rates, Testing Crypto Markets' Resilience
The Federal Reserve raised interest rates by a quarter percentage point for the first time in over three years, prompting a mixed reaction from Bitcoin and ether markets.
Bitcoin (BTC) traded between $75,000 and $76,500 immediately following the decision, while ether (ETH) swung between about $2,370 and $2,430 before settling near the lower end of that range at $2,376.
Warsh, a Federal Reserve policymaker, was hawkish in his opening remarks, stating that the economy appears to be strengthening and financial conditions are not particularly tight.
In fact, 16 of 18 policymakers project at least one additional quarter-point hike this year. Analysts warn that further tightening could be tested if inflation pressure is maintained by rising energy prices.