Cryptocurrency markets rise after Fed raises rates

Green fills the stock and crypto markets despite the Fed just raising interest rates for the fourth time in a row in 2022.

Cryptocurrency markets rise after Fed raises rates

Fed raises interest rates for the 4th time in 2022

On the morning of July 28, the US Federal Reserve (Fed) announced to raise interest rates to a new level of 2.5%, up 0.75% compared to the June adjustment. Current interest rates have returned. on par with the 2018 period, the time before interest rates were brought close to zero to stimulate investment during the COVID-19 pandemic.

Since the beginning of 2022, the Fed has raised interest rates 4 times in a row in March, May, June and July, with adjustments of 0.25%, 0.5%, and 0 respectively. ,75% and 0.75%. The Fed's goal will be to bring interest rates to the range of 3%-3.5% by the end of this year through the remaining adjustments in September, November and December.

Cryptocurrency Market Strong Recovery

Although the news that the Fed raised interest rates is often seen as a negative signal, it is possible that because of preparing for the scenario of a 0.75% increase in advance, both the US stock market and the cryptocurrency market are both positive and negative. receive the above information in a positive way.

As soon as the news of a 0.75% increase was confirmed by the Fed, Bitcoin (BTC) even regained its momentum from the $21,900 region and even surged to the $23,100 mark. After that, the world's largest cryptocurrency is stabilizing around the $22,700-23,000 zone. Previously, because of concerns that the Fed might be aggressive, BTC at one point dropped to 20,706 on July 26.

Similarly, the 2nd coin Ethereum (ETH) is back strongly with a gain of more than 12% in the past 24 hours to $ 1,644. ETH is closing in on July's peak at $1,664, gained by bullish momentum driven by news of The Merge coming in September.

Another name that also benefited from The Merge is Ethereum Classic (ETC), which surged more than 30% to $33.77. The reason is that many people hope that after Ethereum switches to Proof-of-Stake, ETH miners will switch to Ethereum Classic because this network is the most similar copy of Ethereum but still uses Proof-of-Work. .

The strongest increase in the market in the past 12 hours was Lido (LDO) with a surge of nearly 45% thanks to the news that the project management team had updated the proposal to sell 1% of the total supply of LDO to the investment fund Dragonfly Capital at a price markets between $1.45 and $2.45, as well as imposing a 1-year token lock-up requirement – ​​the reason the old proposal failed. Therefore, many people are pushing the price of LDO up to make Dragonfly spend more money.