Main navigation

Breaking: Bitcoin Plunges as Fed Announces Another Big Interest Rate Hike

Wed, 21/09/2022 - 18:01
Breaking: Bitcoin Plunges as Fed Announces Another Big Interest Rate Hike
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

The U.S. Federal Reserve has enacted its third consecutive 75-basis-point hike.


The price of Bitcoin plunged lower following the most recent rate hike, reaching a new intraday low of $18,704 on the Bitstamp exchange.   

Image by

There was a 16% probability of a 100-basis-point hike on the cusp of the announcement, meaning that Bitcoin bulls have averted a much sharper price drop. 

With the most recent increase, the funds rate is now in the range of 3% to 3.25%. Traders see an 89% chance of another 75-basis-point hike in November.   

ADA Records 43% Increase in Trading Volume as Vasil Draws Traders' Attention

As reported by U.Today, rate expectations jumped significantly due to recent inflation data. The prices of major cryptocurrencies slumped significantly lower after Nomura Securities predicted that the Fed would opt for a 100-basis-point rate hike.

The Fed has been aggressively lifting interest rates for several months, putting plenty of pressure on risk assets.

Chairman Jerome Powell has repeatedly emphasized the importance of getting inflation under control.

Bitcoin continues to trade under the $20,000 after bulls lost stream last week. The cryptocurrency remains down roughly 72% from its all-time high.

As reported by U.Today, Galaxy Digital boss Mike Novogratz recently predicted that Bitcoin would win in the long run if the Federal Reserve were to go back to monetary easing.

The Fed’s hawkishness is believed to be the key reason why Bitcoin and other risk assets are severely underperforming this year together with other risk assets.


Latest Press Releases

Sui Recognized as 2024 Blockchain Solution of the Year at AIBC Eurasia Awards
ElmonX Unveils ‘The Scream’ NFTs by Edvard Munch For The First Time Ever
World's First Bitcoin Layer 2 Conference to Unite East & West in Hong Kong, April 2024
Is Bitcoin Mining Legal? Regions in the World Where Mining Is Legally Permissible
Zircuit, New ZK-Rollup Focused on Security, Launches Staking Program
AI Analysis Launches The AIA Mastercard – The Future of Crypto-Fiat Transactions
VAP Group hosts the majestic Global Blockchain Show 2024 in Dubai
Digital Transformation Week Is Returning to Santa Clara This Summer
Arab Financial Services (AFS) Enter Strategic Alliance with Xpence to Innovate SME Financial Management in Bahrain
Breaking Records: UXLINK Attracts 978,000 New Web3 Wallet Registration with $78,000,000 Deposit asset from February 01 to February 22, 2024
What To Expect from The Bitcoin Halving in April 2024
Testnet Launch for dWallet Network - Composable Modular Signature Network
ETH Denver Top Builders Base by Supermoon, Cointelegraph, NDC, Horizen, & Conflux
Citrea, Bitcoin’s First ZK Rollup, Announces $2.7M Seed Funding
Chromia’s Flagship Game ‘My Neighbor Alice’ Unveils 2024 Roadmap
First-Ever ICO on Bitcoin Blockchain: $3.1M Raised in Under 6 Days
CoinList to Host the MASA Token Public Sale as it Unleashes the World’s Personal Data Network
Sui Reveals Initial Wave of Speakers, Famed Venue for First Annual Basecamp Event
Vitalik Buterin Comes to Taiwan as Keynote Speaker at ETHTaipei 2024
Elevating Europe’s Crypto Hub: Next Block Expo Returns to Poland
Our social media
There's a lot to see there, too

Popular articles