The broader crypto market recorded a modest recovery after the US Federal Reserve raised its interest rates to tame rising inflation. With Bitcoin being on a downward trajectory in the last seven days, the 9% increase in the last 24 hours comes as a relief for investors. The popular cryptocurrency’s current upward move will see it retest resistance at $23,500 and $24,000.
But there continues to be increased uncertainty and the risk that Bitcoin might yet again lose its support. At the time of writing this article, Bitcoin was trading at $23,168. Ethereum gained 13.09% in the last 24 hours and is changing hands at $1,642. The altcoins have also seen significant gains. Polkadot is the biggest gainer. It’s up by 13.55% in the last 24 hours, followed by Polygon MATIC by nearly 11%, Avalanche is up by 9.34%, and Cardano 8.35%.
This comes as the Federal Open Market Committee raised the interest rates by 0.75%. The Fed intends to significantly reduce the size of its balance sheet over time in a predictable manner. It wants to allow the principal payments from its securities holdings to roll off the balance sheet up to monthly cap amounts. The Fed highlighted that its balance sheet decisions are guided by its maximum employment and price stability goals. As such, it’s prepared to adjust any of the details in light of economic and financial developments. The Fed aims for price stability and maximum employment, as well as the pace and manner in which it achieves the objectives.
So far, Bitcoin’s demand has managed to match the existing selling pressure. It has registered a lateral price action in the last 24 hours. Moreover, the demand can be demonstrated by exchange outflows against the active exchange inflows.