Bitcoin Rises to $21K After Fed Raises Rates and Pulls Crypto Market; Tron fires up to 27%

Bitcoin (BTC) rose again slightly after threatening to lose the $20,000 level, following market sentiment after the Federal Reserve announced a 0.75 point interest rate hike. percentage, the highest since 1994.

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Ethereum (ETH), the second-largest cryptocurrency by market cap, also dropped before jumping above $1,200 following the Fed’s announcement. Despite this, the market lost some strength again in the following hours, despite still accumulating high in the last 24 hours.

Other major altcoins also operate in the green, such as Solana (SOL) up as much as 20%, while Uniswap (UNI) and Polkadot (DOT) are up more than 15%.

The gains recouped some of the massive loss for cryptos of the past six days following a surprise rise in the US Consumer Price Index (CPI) which showed rampant inflation, and then with the decision of crypto lending platform Celsius. to stop looting.

“Fear, Uncertainty and Doubt (FUD) have taken over the cryptocurrency markets, moving from one asset to another,” Max Galka, CEO of Elementus, told CoinDesk. “Today it’s Celsius, tomorrow it will probably be another company. When that cycle begins, exotic assets like cryptocurrencies will be the first to sell among institutional investors, and we will all know where the road ends.”

Cryptocurrency prices followed equities gains on Wednesday, with the heavy Nasdaq rising 2.5%, reversing some of its strong losses from earlier in the week. The S&P 500, which hit the bear market (down at least 20% from its previous high) on Tuesday, it advanced 1.4% to break a five-day losing streak.

The move was a reaction to the Fed’s strong “inflationary medicine” and indications that it would continue to be hawkish. Jerome Powell, chairman of the Fed, said last week’s inflationary surprise warranted “strong action at this meeting” rather than waiting another six weeks for the next one.

“We decided we needed to move on, and so we did,” Powell said. “We came to the conclusion that we would like to do a little more frontend loading on this.” He noted that “an increase of 50 basis points or 75 basis points seems more likely at our next meeting.”

Inflation also gained prominence for European investors on Wednesday after the European Central Bank (ECB) convened an unscheduled meeting to consider broader market issues, including rising borrowing costs among the continent’s indebted countries.

  • Watch: What Happened to Bitcoin and What to Expect for Cryptocurrency Price

Check out the performance of the main cryptocurrencies at 7:30 am:

cryptocurrencyPriceChange in the last 24 hours
Bitcoin (BTC)US$ 21,176.95+3.38%
Ethereum (ETH)US$ 1,122.22+6.54%
Binance Coin (BNB)US$ 216.45+5.85%
Cardano (ADA)US$ 0.4906+5.40%
XRP (XRP)US$ 0.3176+4.14%

Cryptocurrencies with the biggest gains in the last 24 hours:

cryptocurrencyPriceChange in the last 24 hours
Elrond (EGLD)US$ 51.10+21.93%
ApeCoin (APE)$3.64+17.20%
Helium (HNT)$10.47+16.84%
Tron (TRX)US$ 0.05956+16.80%
Solana (SOL)US$ 31.36+13.70%

Cryptocurrencies with the biggest drops in the last 24 hours:

cryptocurrencyPriceChange in the last 24 hours
XDC Network (XDC)US$ 0.02792-4.64%

Check out how cryptocurrency ETFs closed in the last trading session:

ETFPriceVariation
Hashdex NCI (HASH11)BRL 18.05-3.57%
Hashdex BTCN (BITH11)BRL 26.50-0.37%
Hashdex Ethereum (ETHE11)BRL 18.45+0.81%
Hashdex DeFi (DEFI11)BRL 15.90+4.59%
Hashdex Smart Contract Platform FI (WEB311)BRL 16.90+5.62%
QR Bitcoin (QBTC11)BRL 6.93-4.01%
QR Ether (QETH11)BRL 4.42-1.55%
QR DeFi (QDFI11)BRL 2.71-3.21%

See the main news from the crypto market this Thursday (16):

Tron soars with DAO deploying $220M to buy tokens

Tron’s TRX token has surged as much as 27% in the last 24 hours, with the ecosystem’s decentralized stablecoin, USDD, returning to near $1 parity.

TronDAO, a decentralized organization that oversees the development of Tron, said in a tweet on Wednesday that it has sent over $120 million in USD Coin (USDC) to Binance to “buy TRX,” creating buying pressure among traders. traders. Later, the DAO sent another $100 million for the purchase of TRX, he said in another tweet.

TRX rallied above $0.06 in the early Asian morning hours before taking a brief dip. Futures tracking the token have seen around $8 million in liquidations, one of the highest among major cryptocurrencies.

The additional demand for TRX likely came as traders tried to bring USDD back to its par amid a broader market run that has seen Bitcoin and Ethereum rally sharply over the past 24 hours.

USDD dropped to $0.91 this week amid risks of contagion in the cryptocurrency market and weak macroeconomic sentiment. USDD is an algorithmic stablecoin on Tron and features an automated balancing mechanism that involves minting or burning $1 worth of TRX to create 1 USDD.

BitMEX co-founder will not be arrested after pleading guilty

BitMEX co-founder Benjamin Delo will spend 30 months on probation after being sentenced in federal court in New York on Wednesday.

Delo, alongside BitMEX founder Arthur Hayes, pleaded guilty to charges of violating the Bank Secrecy Act earlier this year in a case that originated in 2020. Delo also agreed to pay a $10 million fine in a case involving the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC).

Hayes was previously sentenced to six months of house arrest and two years of probation, plus a similar fine.

The DOJ, along with the CFTC and FinCEN, accused BitMEX and its founders of violating civil and criminal statutes, allowing U.S. residents to trade cryptocurrency derivatives on the exchange despite not being registered in the country and having flawed trading practices. KYC (Know Your Customer).

How far will cryptocurrencies go? What’s the best way to buy them? We have prepared a free class with step by step. Click here to watch and receive InfoMoney’s cryptocurrency newsletter

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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