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Crypto Prices Spike As Fed Warns Of Upcoming Interest Rate Hikes

Published 07/08/2022, 09:29 AM
Updated 07/08/2022, 10:00 AM
Crypto Prices Spike As Fed Warns Of Upcoming Interest Rate Hikes
ETH/USD
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  • Crypto investors have responded positively to minutes released by the Fed on Wednesday.
  • BTC traded as high as $21,600 after climbing more than 6% in the last 24 hours.
  • Fed Chair warns that aggressive interest rate hikes can be expected in coming months.

There have been a number of events that have taken place in the crypto space recently. Perhaps, the most significant is Bitcoin’s (BTC) price breaking above $21.5K today. Furthermore, a recent event in the crypto space was a court order against Three Arrows Capital (3AC). The order revealed that the CEO of 3AC, Su Zhu, and his wife are creditors.

BTC’s positive performance over the last couple of days has seen other popular cryptos rise in price as well. For instance, Ethereum (ETH) is up 5.61% in the last 24 hours. According to CoinMarketCap, the top 10 largest cryptos by market cap also experienced price gains.

Moreover, crypto investors seemed to have liked last month’s minutes released by the Federal Open Market Committee. The minutes, which were released late Wednesday, put to rest some of the fears regarding the U.S. Central Bank’s commitment to tightening monetary policy. As a result, BTC traded as high as $21,600 – a +6% gain over the past 24 hours.

Accordingly, the upturn in the crypto market has come amid the Federal Reserve entering into a quest to tame inflation. The Fed Chair, Jerome Powell, suggested that more interest rate hikes consistent with the aggressive 50 and 75 basis point increases from the spring should be expected in the coming months.

According to the minutes, it was stated that:

Participants concurred that the economic outlook warranted moving to a restrictive stance of policy, and they recognized the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist.

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