Cryptocurrency prices rose one day after the Federal Reserve raised interest rates for the third time.
According to monitoring company CoinGecko, Bitcoin stock (BTC-USD) was up marginally to $19,040 at the time of the previous check on September 22. Ether, the Ethereum blockchain’s native currency, rose 1.2% to $1,279.18, while Dogecoin rose over 1% to $0.059070.
The Fed raised its Fed Funds rate by 75 basis points to a range of 3% to 3.25% and said that more near-term rate adjustments would be required to battle the fastest since the early 1980s.
The Pump Could Not Be Maintained
“Crypto markets initially responded favorably to the Fed’s 75-basis-point rate rise yesterday, particularly when Powell remarked that at some point, it will become necessary to moderate the pace of rate hikes.’” “said Frank Corva, Finder’s senior analyst for digital assets.
Within an hour of Fed Chairman Jerome Powell’s press conference, Bitcoin stock (BTC-USD) rose from over $19,000 to around $19,600, according to Corva.
The pump, he claimed, “was not maintained as its price sank down to about $18,000 before rallying back to little over $19,000 overnight.”
“The 75 basis point rate rise seems to have been priced into cryptocurrency markets,” said Corva. “But what wasn’t factored in was Putin’s threat to use nuclear weapons on the West just two hours after Powell’s news conference.”
He added that one of the reasons risk-on asset markets like crypto and tech stocks have plummeted so sharply in recent months had been the war in Ukraine and the ensuing energy crisis.
New Era for Bitcoin Stock?
“Money has cycled out of risky asset markets and into bonds and some commodities,” said Corva. “An expansion of the Russia-Ukraine crisis into a possibly larger global confrontation would almost certainly worsen this trend, at least in the near term, perhaps causing further pain for crypto investors.”
On the regulatory front, the White House recently unveiled its first-ever comprehensive framework to oversee the crypto business, intending to remove both intermediaries and centralized entity control.
“The bitcoin business is entering a new age,” CloudTree Ventures managing partner Winston Ma remarked. “The new rules follow an executive order issued by President Joe Biden in March, in which he directed government agencies to investigate the dangers and advantages of cryptocurrencies and submit formal reports on their findings.”
As a result, he noted, the US Treasury Department produced three studies calling for stronger restrictions from investor protection and market stability standpoint.
Featured Image- Megapixl @ Cegli
Author Okoro Chinedu 
