The cryptocurrency market is correspondingly up by 2.2%.
For the first time since 2018, the U.S. Federal Reserve raised its key interest rate to 0.25%-0.5%. This is the first of three rate hikes planned for 2022. The key rate could rise to 1.9% by the end of the year, a measure aimed at combating a 40-year high inflation rate.
Markets reacted positively to the news:
- The S&P 500 Index rose 2.24% in the afternoon session.
- Gold paired with the USD was up 0.7% as of 11:00 (GMT+2).
- The cryptocurrency market gained 2.2%, according to CoinMarketCap.
The price of BTC momentarily fell by $1.000 but quickly recovered around $40.800. The daily value growth of the first cryptocurrency is 1%, the weekly growth is 4%. Earlier, experts predicted that rising interest rates and tighter monetary policy would lead to an outflow of funds from risky assets and a decrease in Bitcoin price. However, the price of the first cryptocurrency continues to show a high correlation with the quotations of major stock indexes.
