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On Wednesday, September 21, the US Federal Reserve System (FRS) raised the key rate range by 75 basis points in one go, to 3-3.25%. The cryptocurrency market reacted with a decline.
“The central bank aims to achieve maximum employment and inflation at 2% over the long term,” the Fed said in a statement.
The department will also continue to reduce holdings of treasury and mortgage-backed securities, as well as agency debt. The Fed has once again noted the global economic difficulties.
Against the backdrop of the news, bitcoin’s price has dropped below $ 19,000. At the moment, digital gold prices have fallen to $ 18,666.
Most of the top 10 cryptocurrencies by capitalization were in the red zone. XRP (-3.1%), Cardano (-0.8%) and Ethereum (-0.7%) have lost more than others in the past 24 hours.
According to CoinMarketCapthe total market capitalization of cryptocurrencies is approximately $ 920 billion.
In March, the Fed for the first time since 2018 increased the key rate up to 0.25–0.5%. The local cryptocurrency rally continued until April: Bitcoin and Ethereum reached annual highs.
B has the Fed has upped the ante again – within 50 bp Against the backdrop of the news, bitcoin crossed the $ 40,000 mark, but on the same day failed the $ 36,000 levelwhich was the beginning of a long correction.
In June, the Fed increased the key rate immediately to 75 bn for the first time since 1994. The indicator reached the level of 1.5-1.75%, to which bitcoin reacted with a short-term increase to $ 22,000, so crashed below $ 18,000.
Remember, July rate increase up to 2.25-2.5% led to the growth of the cryptocurrency market. Bitcoin therefore crossed the $ 22,000 mark and Ethereum – $ 1,500.
In late summer, digital gold reacted to the speech by Fed chief Jerome Powell falling below $ 21,000.
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