Even though the cryptocurrency market has seen a brief rise on the night of the 15th-16th of June following the US Federal Reserve press conference, it came tumbling down once again on Saturday. Today Bitcoin reached $18,769 and Ethereum $976.
The earlier increase in the key rate of the US Fed temporarily stopped the fall in the price of bitcoin, which reached its 18-month low on June 14, before hitting a new low today.
The reason for the rise in the price of Bitcoin, Ethereum, and other cryptocurrencies was the market reaction to the decision of the Fed to increase the key rate immediately by 75 basis points to 1.5-1.75%. The last time such an increase was made was in 1994. During this week’s press conference Fed Chairman Jerome Powell also noted the likelihood of another rate increase in July as well. According to him, growth is possible by another 0.5% -0.75%. Also, according to the predictions of the regulator, the US GDP will increase not by 2.8%, but only by 1.7% by the end of the year.
The market was quick to react to the growth of the Fed’s key rate, and as a result, the S&P 500 indicator managed to close the trading session on July 15 with an increase of 1.5%. The Dow Jones index also rose by 1%.
The crypto market did not stand aside and reacted with the bitcoin quote, which has grown by more than 2.5% after the US Fed announcement. Ethereum also went up, and its price increased by 4.7%. Other digital assets also gained value. However, as mentioned before, the bull trend didn’t last long and at the time of publication, Bitcoin was trading at $19,388 a piece, and Ethereum at $1,005 a coin.
Earlier, analysts noted that the cryptocurrency market’s capitalization fell below a stable $ 1 trillion. Also, amid the crisis in the crypto market, the Tron organization withdrew $2.5 billion worth of cryptocurrencies from the Binance exchange to stabilize the USDD stablecoin.
