Bitcoin shoots to $24k as FED raises hike to 25BPS

• The Federal Reserve has announced an interest rate hike of 25 basis points to a current rate of 4.5 percent to 4.75 percent.
• Bitcoin has surged from $23,050 to $23,818.39 since the announcement.

The crypto market was generally expected to stabilize this year pending another Bitcoin halving in 2024 as observed in the historical price chat. However, it seems the bull run might start earlier than expected. Just as predicted, the Federal Reserve has announced an interest rate hike of 25 basis points to a current range of 4.5 percent to 4.75 percent. This could trigger a more dominating bull market as previous interest rate hikes had ranged from 50 to 75 basis points. Most of the top crypto assets have reacted strongly to this with a marginal surge in the last 24 hours. 

Bitcoin and altcoins respond

Bitcoin has surged from $23,050 to $23,818.39 since the announcement. This represents a 2.8 percent surge in the last 24 hours and a 3.20 surge in the last seven days. Bitcoin is also over 30 percent up in the last 30 days. Despite its impressive run, the asset is still far down from its all-time high of nearly $69,000. Ethereum has also surged from $1,560 to $1,667 since the announcement. Almost all the top altcoins including Cardano, XRP, Polkadot, Cosmos, Litecoin, and Solana are in green. Regardless of this huge news, Dogecoin is still struggling to bounce as it is still down by 1.12 percent in the past hour and 0.28 percent in the past 24 hours. 

Fed spoke on the recent interest rate hike:

The committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the committee decided to raise the target range for the federal funds rate to 4-1/2 to 4-3/4 percent. The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.

Analysts unsure of Central Bank’s next move

It is important to note that the federal funds have been increased by eight consecutive times. This brings it to its highest level in about 15 years. Some market analysts expect the Central Bank to be a bit lenient while others foresee another increase in the benchmark interest rate. Fed Chair Jerome Powell has hinted that monetary tightening will continue until they achieve their target. According to him, the disinflationary process is underway, but in the early stages. 

It all started in March 2022 when the  Federal Open Market Committee (FOMC hiked the interest rate by 0.25 percent for the first time since 2018. Following that implementation, about six additional hikes were forecasted. This has all been introduced. In May, the Federal Reserve hiked the interest rate by 0.50 percent since the year 2000. There was a 0.75 percent hike in June, July, and September. The last one was fixed at 0.50 percent. 

While the crypto market is already responding positively to this, the same cannot be said of Wall Street. Before the Fed decided on the hikes, S&P500 fell by 0.25 percent and Dow fell by over 0.50 percent. Gold, however, surged by 0.80 percent. 

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