Bitcoin Recovers Above $29k Following Fed Dip

Twitter icon  •  Published il y a 10 mois  •  Hassan Maishera

Bitcoin is trading above the $29k level once again after recovering from a dip fueled by the Federal Reserve’s recent rate hike.

TL;DR

  • Bitcoin dipped by 1% after the Federal Reserve increased its interest rate by 25 basis points.

  • However, Bitcoin has recovered and is now trading above the $29k level.

Federal Reserve Increases Interest Rate Again

The United States Federal Reserve has continued its fight against inflation by increasing interest rates once again. The increase in interest rates comes despite the ongoing bank crisis in the United States.

The Fed increased interest rates by 25 basis points, resulting in Bitcoin losing more than 1% of its value following the announcement. 

However, the world’s leading cryptocurrency by market cap has recovered and is now up by nearly 2% over the last 24 hours. Bitcoin is now trading above $29,100 as investors troop into the cryptocurrency market.

With the rising interest rates, the banking woes in the United States might be far from over. The First Republic Bank was recently acquired by JPMorgan Chase, and two more regional banks in the US; , Los Angeles-based PacWest Bancorp (PACW) and Phoenix-based Western Alliance Bank (WAL), are currently struggling.

The ongoing crisis in the traditional financial ecosystem continues to attract more investors into the cryptocurrency space, and that could boost Bitcoin’s price in the short and medium term.

Ether, the second-largest cryptocurrency by market cap, continues to hover around the $1,900 mark after adding more than 1% to its value in the last 24 hours.

MATIC, the native token of the Polygon ecosystem, is the best performer amongst the top 20 cryptocurrencies by market cap today after rallying by more than 2%.

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.