The Fed has increased the key rate. Bitcoin reacted with a weak decrease
On Wednesday, November 2, the US Federal Reserve (Fed) increased the range of the key rate by 75 basic points – up to 3.75–4% per annum.
This is the sixth increase in the base rate in 2022 and the fourth in a row with a step of 75 b. P. Now the indicator is at the maximum level since 2008. According to Bloomberg, for the last time the agency acted so aggressively in the 1980s.
The regulator noted an increased level of inflation, which in September amounted to 8.2% in annual terms. The statement also emphasized that the “additional pressure” on the economic situation in the United States and all over the world is provided by the war of the Russian Federation against Ukraine.
“[FOMC] firmly intends to return inflation to the target level of 2%. […] The committee will be ready to adjust the position on monetary policy if there are risks that may interfere with the achievement of goals, ”the press release said.
The American stock market negatively reacted to the decision of the Fed. According to the results of the Session on November 2, the NASDAQ Composite index decreased by 3.36%, S&P 500 lost 2.5%, Dow Jones indicator – 1.55%.
According to Coingecko, the increase in the key rate in the USA practically did not affect the state of the cryptocurrency market. The total capitalization of digital assets decreased by 0.5%.
In March, the Fed for the first time since 2018 increased the key rate to 0.25-0.5%. Local rally cryptocurrencies lasted until April – Bitcoin and Ethereum reached the annual maximums.
In May, Federal Reserve again raised the rate – by 50 b. P. Against the background of the news, Bitcoin overcame $ 40,000, but on the same day it failed the level of $ 36,000, which was the beginning of a protracted correction.
In June, the Fed raised the key rate by 75 b at once. P. For the first time since 1994. The indicator reached the level of 1.5–1.75%, https://gagarin.news/news/shib-the-metaverse-over-100-000-land-plots-for-sale-in-ethereum/ to which Bitcoin reacted with short -term growth to $ 22,000, and then collapsed below $ 18,000.
The next month, an increase in the rate to 2.25–2.5% led to the growth of the cryptocurrency market. Bitcoin then overcame $ 22,000, and Ethereum – $ 1500.
Recall that in September the regulator raised the rate to 3-3.25%. The first cryptocurrency reacted with a decrease below the level of $ 19,000.
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