Bitcoin responded favorably when it was announced that the Federal Open Markets Committee (FOMC) had unanimously decided to raise the Fed funds rate by 75 basis points.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run,” a press release stated.
“In support of these goals, the Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate.”
Bitcoin bulls reap gains for their late long positions following the United States Federal Reserve’s implementation of yet another significant interest rate hike, the leading cryptocurrency surged past $22,000.
The market already anticipated that the Fed will raise interest rates by 75 basis points next. But analysts are weighing up the long-term effects of the central bank’s delicate juggling act between containing inflation and averting recession.
The market has had considerable gains over the past week, and the bullish momentum continued with a number of other major assets, like Solana, MATIC, and Cardano, as well as Ether, posting positive daytime price movements.
The total market capitalization of cryptocurrencies is currently at $1.02 trillion as the market seeks to emerge from the downturn it has been in for the entire year.
The market spike has led to a significant amount of liquidation as a result of traders’ attempt to profit from their bets against the trend and the expectation that the price of Bitcoin and other cryptocurrencies will decline over the course of the next 24 hours. Data from Coinglass shows that 52.32 percent of all liquidations are short order liquidations.
107,583 traders from around the cryptocurrency market liquidated their long orders in the last day, totaling about $318 million.
Although it is unknown which way the market will turn next, it appears that the downturn is about to come to an end because the Fed’s financial tightening to battle US inflation is starting to look priced in.