Bitcoin (BTC) rose sharply on Wednesday to break above $22,000 as risk appetite resurfaced following the US Federal Reserve’s move to raise interest rates by 75 basis points.
BTC was trading around $22,575 at 15:20 pm ET on Wednesday, up nearly 10% in the past 24 hours.
Of these gains, about 5% came on the back of Fed’s rate hike. Ethereum (ETH) also rose sharply amid the positive market reaction, breaking to highs of $1,580 with over 15% gains in 24 hours.
Stocks also rallied after the rate hike and as Fed Chair Jerome Powell confirmed the central bank’s desire to battle inflation. The S&P 500 was up 2.43%, the Dow Jones Industrial Average had added more than 450 points while the Nasdaq was 3.9% higher.
Among crypto stocks, Coinbase (COIN), which tanked more than 21% on Tuesday to hit lows of $52.93, was up more than 11% at the time of writing. The Coinbase stock was trading around $54.84.
This is the second time the Fed has increased the interest rates by 0.75% and has the rate at levels monetary policy makers and economists see as neutral.
However, Powell noted in a speech after the Federal Open Markets Committee (FOMC) meeting that inflation remained well above 2%, hinting at further hikes.
Powell did note that it is possible policymakers would look to slow down on the rates in the near future.
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