BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

Crypto’s Flash Red After A 0.75% Interest Rate Hike By the Fed

by BlockNews Team
September 22, 2022
in CRYPTO, FINANCE, INVESTING
Reading Time: 3 mins read
A A
1
SHARES
11
VIEWS
Share on XShare in TelegramShare on Reddit

Bitcoin (BTC), Ethereum (ETH), and other altcoins retreated and reversed their intraday gains after the Federal Reserve announced its third consecutive 75 basis point (bps) interest rate rise on Wednesday. 

The Fed’s 0.75% increase in policy interest rate extended the interest hike into the 3 to 3.25 percentage range. The figure represents a significant increase since March when the Federal funds rate was close to zero. The subsequent increases in interest rates mean the Federal Reserve’s fastest policy shift in four decades. 

Prices of cryptocurrencies rallied ahead of the news, suggesting that traders had “priced in” the 75 basis points rate hike. However, shortly after the Fed’s rate hike decision, Bitcoin and altcoins fell in tandem with U.S. stocks. 

Bitcoin Loses The Crucial $19,000 Support

Bitcoin’s price plunged approximately 9% from its intraday high of $19,949 on Coinbase, hitting lows of $18,153 a few minutes after the statement by the Federal Open Market Committee (FOMC). This decline was parallel with a sudden drop in U.S. stock prices, with the S&P 500 correcting 0.5%. 

Ether’s drop was the most severe, shedding 12% of its value from highs above $1,400 to close the day around $1,245. The losses were 6% for Binance Coin (BNB), 11.8% for XRP, and 8.5% for Cardano (ADA).

On the other hand, the U.S. dollar index (DXY), which measures the dollar’s strength against a set of top foreign currencies, spiked to 111.6 after the Fed’s announcement, the highest in 20 years. 

The 10-year U.S. Treasury note yield increased to 3.6% after teetering around 3.5% a few minutes before the interest hike. Likewise, the 2-year Treasury note yield surged from 3.98% to 4% over the same period. 

The central bank predicted that the policy interest rate would peak at 4.6% in March 2023. Therefore, it could drop to 3.9% in 2024 and 2.9% in 2025. 

The strengthening dollar and the falling BTC after the Fed’s decisions reflect investors’ increasing appetite for cash and cash-based tools compared to riskier assets. 

The Fed’s hawkish stance and attempts to bring down inflation from the current levels of 8.3% continue to weigh down Bitcoin’s price. At the time of writing, BTC was exchanging hands at $18,920, with buyers fighting to push it back above the $19,000 level.

Note that the big crypto has held this level since September 9. BTC’s price action on the daily chart shows that $19,000 is a significant level for the flagship cryptocurrency. The first time it bounced off this demand zone, the price rallied 32.% to areas above $25,000. The second time, this level provided a launching pad in early September, propelling the cost of the pioneer crypto by 19.58% to $22,800. 

As such, Bitcoin needs to flip this level back to support to ensure safety. A daily candlestick close below this level will signal weakness amongst buyers with a possibility of a retest of the $18,000 psychological level. 

The 50-day simple moving average (SMA) and the relative strength index (RSI) were facing downward, suggesting that the price action favored the downside. The price strength at 40 indicated that the bears controlled the price. This technical outlook indicates more pain for Bitcoin and the broader crypto market. 

Tags: BitcoinBlockchaincryptoWeb3
TweetShareShare
Previous Post

Ohio Cuts the Ribbon for A New Bitcoin Mining Site

Next Post

Wolf Game Project Overview

DON'T MISS THESE! HOT OFF THE PRESS

Pepe Coin’s Wild Rebound: Bull Trap or Breakout Brewing?
CRYPTO

Pepe Coin’s Wild Rebound: Bull Trap or Breakout Brewing?

July 1, 2025
Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling
CRYPTO

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

July 1, 2025
Pi Coin in July 2025: Rebound Brewing or Another Breakdown?
CRYPTO

Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

July 1, 2025
VeChain Struggles to Regain Steam After December Peak
CRYPTO

VeChain Struggles to Regain Steam After December Peak

July 1, 2025
Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party
CRYPTO

Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

July 1, 2025
Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Load More

Related News

Pepe Coin’s Wild Rebound: Bull Trap or Breakout Brewing?

Pepe Coin’s Wild Rebound: Bull Trap or Breakout Brewing?

July 1, 2025
Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

July 1, 2025
Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

July 1, 2025
VeChain Struggles to Regain Steam After December Peak

VeChain Struggles to Regain Steam After December Peak

July 1, 2025
Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.