Fed slows rate hikes
The US Federal Reserve (Fed) announced the latest interest rate adjustment, raising the standard interest rate by 0.25%.
The US Federal funds rate is currently 4.75%, the highest since 2008 financial crisis. It can be seen that the Fed has kept its commitment to reduce the interest rate hikes in the latest update. In 2022, this agency has raised interest rates 7 times.
The reason for this adjustment is a positive signal of the US inflation situation, which recorded a 6th consecutive month of decline in the December 2022 report.
Even so, Fed Chairman Jerome Powell said that the US central bank will maintain its strategy of raising interest rates until it can be certain that inflation is under control, with a target rate for 2023 is 5-5.1%. Many analysts think the Fed will probably raise rates 2-3 more times this year, then start reducing rates again.
Cryptocurrency market is painted in green
Bitcoin price at the time the news was announced did not have much volatility, because the market had predicted the Fed’s move.
However, in the following hours, BTC regained and made a new high at $24,255, the highest price so far in 2023. This is also the first time since August 2022 that Bitcoin was able to rise above the $24,000 price zone.
Ethereum (ETH) quickly caught up with the BTC rally and reached the $1,696 mark, fully regaining what was lost during the FTX crash last November.
The top altcoins in the market are also surging with a volatility of 4-12%.
In the past 12 hours, the number of derivative orders liquidated was only $114 million, a much lower number than previous unexpected ups and downs, with short orders accounting for 78%.
Many prominent altcoins in recent times have even been x2, x3, and set new ATHs, such as Aptos (APT) or Optimism (OP).
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