Crypto News Today: Bitcoin Price Rises above $23000 as Fed Interest Rates Hiked by 75 Basis Points

The US Federal Reserve has raised interest by 75 basis points for the second time. Crypto and other financial markets took the hit when the reserve raised the interest for the first time. But for the second time, the news of the Fed raising interest rates has had an effect on the values of Bitcoin and Ethereum. While the market faced a shakedown post Luna’s downtrend, the crypto market saw a huge fallout.  

Indicators of cash flow and production have diminished. The employment rate remains static, and job gains have increased, however, the inflation rate remains elevated reflecting that supply and demand being imbalanced is a ripple effect of the pandemic that has hit all businesses. 

Ethereum and Bitcoin’s prices surged post Fed Reserve’s announcement. An hour after the announcement, BTC had gained 8% worth $ 23026.35, while ETH was up 11% worth $1,624 in the last 24hours. The equity market also saw a positive upliftment post the announcement. 

Additional Read: Top Crypto Prices Today

Source: TradingView

Source: TradingView

In a press conference, Jerome Powell, Fed Chair stated “Another unusually large increase could be appropriate at the next meeting” in September. His statement tipped that another interest raise could be on the anvil. He also mentioned that the ‘pace of increase’ in rates will eventually come down to reduce the inflation rate to 2%. 

Marcus Sotiriou, an analyst at GlobalBlock, pointed to the sell off in the crypto market on monday and tuesday this week hinting at a sentiment of fear of what the Fed could possibly do.

Sources from JP Morgan have hinted that the Fed may increase the interest by a full 100 basis. This could be the first time that the Fed increases the base points to such levels in the history of Fed Reserves. The source has also added that the increase in base points could help mitigate the current inflation rate of 9.1% in the US. 

Source: Crypto News 

What is Ethereum? 

Ethereum is a layer 1 open source blockchain that allows users to build dApps powered by a self-executing smart contract to automate the process of transactions across borders. It was the first blockchain to include functionality to the blockchain. It was founded by Vitalik Buterin in 2014 along with Gavin Wood and Charles Hoskinson. The native token of the Ethereum blockchain is Ether (ETH) Ethereum facilitates as a platform to help develop any digital technology. It natively supports many DeFi applications, NFTs, DAOs and dApps. The total market cap of Ethereum is $198,327,608,114 as of July 28, 2022.

Additional Read: Bitcoin vs Ethereum: What’s the Difference?

What is Bitcoin? 

Bitcoin is the first open source blockchain to introduce peer to peer transactions on a decentralized network. It was founded by a pseudonymous name ‘Satoshi Nakamoto’.  Bitcoin was primarily invented to tackle the challenge of double spending. Unlike traditional finance users can move their funds from one person to another through the bitcoin network. Bitcoin blockchain uses Proof of Work consensus mechanism to keep the network secure. Bitcoin is primarily a payment settlement platform and has a market cap of $438,511,212,504 as of July 28, 2022.

How to buy Bitcoin (BTC) and Ethereum (ETH) in India? 

Use this three-step process to buy your first Bitcoin or Ethereum using the CoinDCX crypto investment app.

• Sign Up for the CoinDCX account: Enter a valid email address and a user name on the sign-up page. Once the Email Id has been verified, set a strong password to secure your account.
• Verify the account: You need to complete your KYC, to buy BTC or ETH on the CoinDCX platform. 
• Buy BTC or ETH: After the account has been verified, you can deposit any amount of fiat currency you are comfortable with and start your crypto journey!

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].

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