BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Play Now
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Bitcoin

Bitcoin and Safe Havens Rise on FED Rate Hike

by Dalmas Ngetich
Jun 16, 2022 - 12:00 am
in Bitcoin
Bitcoin and Safe Havens Rise on Fed Rate Hike

On Wednesday, June 15th, the Federal Reserve raised its interest rate by three-quarters of a percentage point, making it the highest increase in interest rate in 28 years. The last time interest rates in the US sprung so high was in 1994, when the Fed tried to cool off the recession.

BREAKING: The Federal Reserve intensified its bid to tame high inflation by raising its key interest rate by three-quarters of a point — the largest hike since 1994. It also signaled more large rate increases to come, raising the risk of a recession. https://t.co/vfrqGQLMFW

— The Associated Press (@AP) June 15, 2022

Commenting on the rate hike, Jerome Powell, the Chair of the Federal Reserve said:

Clearly, today’s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common. Decisions will be made meeting by meeting and we (the Fed) will continue to communicate our intentions as clearly as we can.

The hike in interest rate was a move to regulate inflation in the United States. The US economy has seen personal expenditure inflation of 5.2% so far this year, which is significantly higher than the projected 4.3%.

Bitcoin and Safe Havens React to the News

Following the announcement, Bitcoin’s volatility skyrocketed. The crypto asset delved as low as $20,300, before bouncing back up in less than an hour. Bitcoin gained close to 10% from its hourly low, at the time of the announcement. Although the cryptocurrency eventually returned to its roots, it touched the $23,000 mark in the late hours of Wednesday.

Ethereum and other altcoins also experienced high volatility after the announcement. Interestingly, significant value appreciation was also noticed in the stock markets. It wasn’t unusual to see crypto-assets and stocks react to the Fed’s decision.

The Long-Term Effect of the Hike

A hike in interest rates usually discourages borrowing and investing. Thus, the US economy will have lesser money to spread on investments, reducing traders’ exposure to the crypto and stock market. We can expect a decline in the general financial markets in the coming months. However, as Powell emphasized, the rate is still open for review in the coming months. The effect of the recent adjustment on the economy will determine whether further revisions will trigger the Fed to increase or decrease interest rates.

Tags: BitcoinCrypto
Dalmas Ngetich

Dalmas Ngetich

His primary focus is on technical analysis (crypto is, obviously, *not* crypto without the twirls of price action), the magic of DeFi, and NFTs. He is specifically training his eyes and effort on DeFi—and how the tech is changing investment, opening up opportunities for everyone—and the possibilities of NFTs.

Related Posts

Man uses Bitcoin-backed loan to purchase real estate without selling BTC

Bitcoin-Backed Loans Unlock Real Estate Market for Crypto-Rich Investors

June 15, 2025

Bitcoin-backed loans let crypto investors buy real estate without selling BTC, preserving gains and sidestepping capital gains taxes.

Anthony Pompliano to head Bitcoin-focused ProCapBTC SPAC raising $750M

Anthony Pompliano to Lead $750M Bitcoin-Buying SPAC Merger with Columbus Circle

June 13, 2025

Pompliano may lead ProCapBTC, a SPAC targeting $750M to buy Bitcoin via merger with Columbus Circle Capital 1,...

Law enforcement agents take down BidenCash dark web marketplace and seize associated domains and cryptocurrency

US Seizes 145 Domains and Crypto Linked to BidenCash Dark Web Market

June 5, 2025

US seizes 145 domains and crypto from BidenCash, a dark web site accused of selling 15M stolen cards...

SEC Chair Paul Atkins addressing Senate about crypto regulatory changes

SEC to Ditch ‘Regulation by Enforcement’ in Favor of Transparent Crypto Rulemaking, Says Chair Atkins

June 4, 2025

SEC’s Paul Atkins says crypto regulation will shift from court actions to public rulemaking, focusing on clarity, innovation,...

Press Releases

image2

Could XYZVerse Overtake DOGE and SHIB? Analysts Say $0.003333 Could Explode to $10!

March 30, 2025

XYZVerse aims to outpace DOGE and SHIB, with bold $10 price goals, strong community rewards, and rising demand as it...

image1 1

Massive Institutional BTC Buys Could Launch the Next Bull Market: 5 Altcoins to Watch

March 29, 2025

Institutional Bitcoin buys may trigger a market surge. Five altcoins, including $XYZ, stand to gain—early investors could see major ROI...

image1

XRP Faces Strong Resistance While XYZVerse Gains Early Investor Attention With 10 Billion $XYZ Airdrop

March 28, 2025

XRP struggles at resistance, while XYZVerse grabs early investor attention with a 10B token airdrop and rapid growth toward a...

BTC

Popular Memecoin MEW Pledges $10,000 to Pasadena Humane Organization to Aid Animals Affected by California Wildfires

January 20, 2025

MEW memecoin donates $10K to Pasadena Humane for wildfire-affected animals. Join the mission to aid pets and wildlife in crisis...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise